Please take note of the main terms and conditions when purchasing or renewing an insurance policy.
Your Duty of Disclosure
Before you enter into a contract of insurance with an insurer, you have a duty under the SECTION 25(5) OF THE INSURANCE ACT CAP 142 to disclose every matter that you know or could reasonably be expected to know is relevant to the decision whether to accept the risk of the Insurance. You have the same duty to disclose these matters before you renew or change this contract.
If you fail to comply with your duty of disclosure, the Insurer may be entitled to reduce their liability under the contract in respect of a claim or may cancel the contract. If your non-disclosure is fraudulent, the insurer may also have the option of avoiding the contract from the start of its validity date.
NB: The disclosure required is especially important in matters relating to the physical risk, past claims, cancellations of insurance policies, the imposition of increased premiums and any matters that might affect the acceptance of the risk such as insolvency or criminal convictions. Disclosure is not limited to matters applying to the insured named in the policy but includes other associated or past business or private insurances.
Third Party Interest
Umberima Fides – The Doctrine of Utmost Good Faith
Change of Risk or Circumstances
Your policy of insurance provides that you will not be able to recover under it if you enter into or have entered into any agreement which excludes or limits your right of recovery from other parties: therefore you MUST NOT have agreed and MUST NOT agree to give away any of your rights because this will affect the insurer’s right to recover under subrogation from the other parties.
It is most important that the sum insured you select is adequate to represent the value of the property insured, calculated in accordance with the cover being arranged. OTHERWISE you will be UNDER INSURED and in the terms of the Average/Coinsurance provisions of your policy, you may be responsible for paying part of the loss you actually suffer. In other words, if you base your insurance on too low an amount, you will contribute proportionally to any loss.
You must inform us of the interests of all third parties (e.g. financiers, lessors) to be covered by this insurance. We will protect their interests only if you have informed us of them and we have noted them on the Certificate of Insurance (does not apply to Marine Cargo Policies).
SECTION 25(5) OF THE INSURANCE ACT CAP 142, imposes an obligation on the part of the insured to disclose all relevant matter which is likely to have a bearing on the insurer accepting or renewing this insurance. The invitation to effect renewal is given on the understanding that the description and details of risk contained in the proposal remains unaltered unless previous advice to the contrary has been received and acknowledged in writing.
It is our duty as brokers to give you sound professional advice, but that advice can only be sound and valid if we are kept properly informed of changes to your business operations or circumstances. It is imperative that you advise us of location, changes of new business activities/products or any radical departure from your normal form of business. For example, any insurer may well accept an engineering risk but will no longer give cover if a woodworking activity is entered into.
In liability insurance, insurers must be aware of changes in your nature of business, especially in Products Liability; if your product range changes or if you are involved in products not previously advised to insurers, these must be made known to them.
In Personal Accident Insurance, changes in occupation or sporting activities could prejudice your cover.
In order to ensure proper protection, please consult us if you are in doubt as to whether an insurer should or should not be told of certain changes. We would rather give you the extra service by answering these queries than allow you to take the risk of losing proper indemnity under your insurance policies.