The coverage at the center of the dispute was for a 2014 Maserati GranTurismo. TL, a director of the business and the sole driver of the vehicle, was involved in a single-car accident in December 2022, prompting the business to file a claim.
QBE Insurance denied the claim based on the fact that TL had not disclosed three of the five speeding offenses he had committed from August 2019 to August 2022. Only two of these offenses were revealed when a second car was added to the insurance policy in November 2022.
According to QBE, the policy was initially purchased through a broker, and the offenses were not disclosed during policy renewal. Had the insurer known TL's complete driving history, it would have declined to provide coverage for the Maserati from the start. As a result, QBE canceled the policy following the claim denial and refunded the annual premium to the business.
The business contended that TL was distracted by a "messy" divorce at the time of the policy renewal, which led to the non-disclosure of the speeding offenses. They argued that QBE had earlier agreed to add the second vehicle to the policy while being aware of two of the offenses, thus showing leniency.
In response, the authority reviewed QBE's underwriting guidelines, which clearly state that drivers with "three or more driving convictions" are deemed unacceptable for high-value vehicles such as Maserati. The authority concluded that, had QBE been informed of the full extent of TL's driving record, it would have deemed the risk uninsurable.
The ombudsman overseeing the case stated, "I am not convinced by the complainant's argument that the insurer should exercise discretion. It is evident that the policy would not have been renewed if all offenses committed in the three years before the 2022 renewal had been disclosed."
The decision echoes sentiments from similar situations where disclosure of driving history plays a crucial role in the legitimacy of insurance policies. The ombudsman pointed out, “On balance, based on the underwriting rules, the whole risk would have been uninsurable,” supporting QBE's case against providing coverage under these undisclosed conditions.
This ruling highlights the importance of complete transparency in insurance applications and renewals, especially where high-value assets like sports cars are concerned.
