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Most comprehensive and third party property policies contain conditions binding the owner of the vehicle, and failure to comply with them in certain circumstances can result in the insurance company refusing to accept the claim.
Some examples are:
1) Failure to Report the Accident As well as reporting a crash to the police, you should report all details to your insurance company as soon as possible - even if the damage is minimal. If the owner does not intend to make a claim, it is still advisable to notify the insurance company of the incident, indicating that the notice is not a claim.
2) Alcohol and Drugs
Most policies state that no cover will be given if, at the time of the accident, the driver was under the influence of drugs or alcohol above the prescribed blood alcohol level.
3) Unlicensed Driver
Most policies will include a provision that the insurance company can refuse a claim when the car was being driven by an unlicensed driver. This includes a person whom the owner has loaned the car.
4) False or Incomplete Particulars
At the time a person arranges insurance, they should ensure that all questions asked by the insurance company on the proposal form have been truthfully answered. There is an obligation on the owner to truthfully disclose all factors relevant to the risk to be insured and to their driving history. If the owner does not do so, the insurance company may refuse to honour a claim.
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