Suppose you live in Leidsche Rijn and drive every morning via the A2 towards Amsterdam. When taking out your motor insurance, you fail to disclose that your 18-year-old son regularly uses the car for commuting over the A27. What happens if damage occurs en route?
Which information must you disclose?
All facts that the insurer reasonably requires to assess the risk. Consider medical history for a life insurance policy, previous claims for a motor policy or structural details for a buildings insurance policy. These data influence whether the insurer accepts the risk, which exclusions apply and the level of the premium.
Consequences of non-disclosure at the time of claim
If the insurer discovers the undisclosed facts only when a claim is made, three statutory outcomes apply pursuant to articles 7:929-930 BW.
1. A higher premium would have been the result
The benefit is proportionately reduced. Example: failure to disclose a young driver on the A12 results in 60 % payment instead of full payment.
2. Rejection at application stage would have occurred
Full refusal is possible if the insurer notifies this in writing within two months. A serious condition that was not disclosed under a life policy may lead to refusal.
3. Intentional deception
In the event of intent, all rights to payment lapse, even in respect of subsequent damage. The policy may be terminated immediately.
Aggravated duty of disclosure — what is that?
A stricter duty applies to life, disability and health insurance policies. You must also spontaneously provide relevant information that you reasonably consider material, even without an explicit question. This applies in particular to medical history, previous claims or criminal convictions.
Practical examples from case law
- Motor: failure to disclose that colleagues use the car for journeys over the A27 — benefit reduced in the event of damage
- Property: failure to disclose that the attic of a building on the Vredenburg is temporarily let via Airbnb — fire damage fully refused
- Life: failure to disclose a chronic illness four years earlier — benefit refused after death
- Disability: failure to disclose a burnout trajectory — refusal of claim
Arranging your own protection
Three simple rules:
- Answer questions fully — in case of doubt, provide too much rather than too little information
- Retain the application form and all correspondence as evidence
- In the event of changes during the term: actively report material changes (renovation, new driver, change of occupation)
In the event of a dispute concerning non-disclosure
The burden of proof lies with the insurer. It must demonstrate that you were aware of the fact, that it was material to it and that it would otherwise have decided differently. If it fails to do so, it pays out in full. In case of doubt you can contact Juridisch Loket Utrecht or a lawyer at Arslan, Vredenburg 40, 3511 BD Utrecht (030 - 8200 200). The matter may ultimately also be submitted to the Rechtbank Midden-Nederland in Utrecht.