A complainant who failed to inform her insurer about numerous driving infringements has lost her appeal to overturn claim denials relating to the theft of two vehicles.  

The owner lodged claims in January last year after the vehicles, insured under a comprehensive motor policy, were stolen the month prior.   

Suncorp accepted that the thefts had occurred but said it was entitled to deny the claim because the policyholder had breached her duty of disclosure by failing to reveal her driving history, which prejudiced its decision to offer her the policy.  

The complainant purchased the policy in June 2020, and informed the insurer that she had one driving offence relating to speeding in 2018 that resulted in a fine and loss of demerit points. The insured renewed the policy in June 2021 and amended it in October to add a second vehicle to the coverage. 

However, Suncorp provided the Australian Financial Complaints Authority (AFCA) with a copy of the complainant’s traffic record that showed she had nine speeding offences, plus good behaviour bonds, and licence suspensions between June 2017 to October 2020 that she had not disclosed. Her record also included one reference to unlicensed driving.  

The insurer said that it informed the policyholder in its renewal letter that the single speeding offence had been the only incident disclosed and had asked for her to make changes for any claims, infringements or accidents that had been missing, which she did not.    

It also referenced a conversation between one of its consultants and the claimant about her traffic history, where she said that she had only had one speeding offence.  

The claimant later admitted to AFCA that her licence had been suspended due to a demerit point accumulation but said she did not understand why her driving history was relevant to insuring her vehicles.   

Suncorp said if it had been aware of her entire driving history, it would not have offered her coverage in accordance with its underwriting guidelines that say anyone with more than one loss of licence, suspension, or good behaviour bond is an “unacceptable risk”.  

AFCA accepted the complainant had a duty to take reasonable care not to misrepresent her driving history following the policy amendments made in October 2021 and said she should have informed the insurer of the undisclosed infringements.  

“I am satisfied that the complainant knew about the above traffic infringements and knew (or should have known) that it was relevant to the insurer’s decision to offer insurance,” AFCA said.  

“I am satisfied that, by failing to disclose the above driving history, the complainant breached the duty of disclosure.”  

The ruling acknowledged that the claimant’s misinformation prejudiced the insurer’s decision to offer her the policy and permitted it to decline both theft claims.   

AFCA also accepted the insurer’s agreement to refund the premiums paid for the policy by the complainant since its inception as an appropriate remedy for the dispute.  

Click here for the ruling.