Duty of Disclosure – Africa Specialty Risks Limited


For intermediaries domiciled in the UK, The Insurance Act 2015 contains new measures which relates to business (commercial) customers you introduce to us. (ie, an insured buying insurance wholly or mainly for purpose related to their business).

Please ensure you have advised them that under the new Act they have a duty to disclose every material circumstance they know or ought to know, after reasonable search. This applies before the cover is placed, when renewed and if altered at any time during duration of the Policy. A circumstance is material if it would influence an Insurer’s decision whether to accept the risk, including its terms and pricing.

If they are in any doubt whether a circumstance is material to the risk, it should be disclosed, as failure to disclose may entitle their Insurer to either void the Policy from inception or impose different terms.  Any claims made would either not be paid or may be reduced in value.

Where there are Warranties, Conditions Precedent or any onerous conditions applicable to the business you must alert the client to this and that failure to meet such conditions of their policy could invalidate the cover (and hence no claims would be paid), or suspend cover until such warranty etc, is remedied, (and any claims during the suspension period may not be paid.