The Impact of Misrepresentation by you, is as follows:
- (a) Innocent Misrepresentation:
Where you have answered all questions in your application form honestly and with reasonable care but where you made an innocent
misrepresentation (that is, one that is neither negligent nor fraudulent) we will pay any covered claim event subject to the terms and conditions of your policy.
- (b) Negligent Misrepresentation:
If you make a negligent misrepresentation or fail to take reasonable care in completing your application form your cover may not fully
operate and in the event of a claim, we will exercise one of the following remedies:
- (a) If knowing the full details, we would not have entered into the insurance contract, we may avoid the contract, refuse all claims and
return any premiums paid by you.
- (b) If we would have entered into the insurance contract, but on different terms (excluding terms relating to the premium), the contract
may be treated as if it had been entered into on those terms.
- (c) If we would have entered into the insurance contract but have charged a higher premium, we may reduce proportionately the amount to be paid on your claim.
- (d) Where there is no outstanding claim under the insurance contract, we may either:
(i) give notice to you that in the event of a claim we will exercise the remedies in paragraphs (a) to (c), or
(ii) terminate the contract by giving reasonable notice to you.
- (c) Fraudulent Misrepresentation:
If you make a fraudulent misrepresentation or where any conduct by you involves fraud of any kind, we shall be entitled to avoid
the contract of insurance and refuse any claims.
