Non-disclosure is a major issue in the life insurance industry, resulting in many rejected claims, dealer group Synchron warns.

Director Don Trapnell says it is crucial that advisers know what impact non-disclosure has on clients.

Synchron uses a video to educate its advisers about the dangers.

“We believe that the more this method of disclosure is used by advisers, the less likelihood there will be of litigation in the area of explaining duty of disclosure,” he said.

“Also, the less likelihood there will be of the client having a claim denied at some future date due to non-disclosure.”

Mr Trapnell says while disclosure may adversely affect premiums, that is better than clients’ claims being refused.