Can An Insurance Company Refuse To Insure You?

Being refused for an insurance policy can come as a shock. It may be very unexpected as you may have thought that you aligned with the eligibility criteria of the insurance company.

With more than 92% of people in the European Union having an insurance policy of one type or another, it’s important to understand your own personal circumstances before you purchase a policy for your car, health or business.

It’s true to say that life is increasingly busy for many insurance policy consumers. This can result in policy holders taking out an insurance premium without knowing at least the important terms and conditions as they feel they don’t have time to get to grips with them.

A great piece of advice is to make sure you know exactly what you’re covered for so that if you need to make a claim, you can get this started. An experienced and professional insurance company will take you through the details of your policy before purchase so you understand your coverage.

Contents

●  What does insurance refusal mean?

●  Can an insurance company refuse to insure you?

●  What does voided insurance mean?

●  The difference between cancelled and voided insurance.

●  Discover your next insurance policy with GasanMamo.

What does insurance refusal mean?

Insurance refusal is when an insurance provider decides not to give you the coverage that you requested from them. Can an insurance company refuse to insure you? The answer is yes, they can.

The provider is within their rights to refuse a policy for a customer and it’s likely they will have justification for this decision. The background to this judgement may be linked to the level of risk of a claim that you present, your circumstances, credit history or claims record.

Can an insurance company refuse to insure you?

An insurance provider’s decision has to stay within the limits of anti-discrimination legislation. However, there are some practical reasons why an insurance provider may refuse to let you take out an insurance policy with them, such as:

●  Your application doesn’t align with all of their eligibility criteria.

●  You have a history involving some high claims or regular claims.

● Your occupation presents some risks that can’t be covered within that specific policy.

●  You or the thing you want to insure present an unusual level of risk.

If an insurance provider refuses to give you an insurance policy, ask for the reasons why so you can understand their decision to remedy any issues that are preventing your coverage.

What does voided insurance mean?

If an insurance policy is voided, this means that it has been declared invalid just like it never existed. From this point, this particular policy no longer provides you with any coverage or protection.

Typically, there is a rationale behind voiding an insurance policy. This rationale can be down to one or more of the following:

● Misleading or incorrect information provided by the policy holder, such as the wrong details of the car, name, claims history or criminal convictions.

● Withheld information. For example, if a policy holder didn’t disclose that another insurance company had refused to insure you or, for instance, a previous medical condition when applying for travel or health insurance.

● A fraudulent claim is submitted.

The difference between cancelled and voided insurance

There is a contrast between cancelled and voided insurance. Voided insurance is terminated and is in essence like it has never existed. This means that no cover was ever provided from when it was issued.

A cancelled policy is one that did exist but now has been terminated, and thus no longer covers the policy holder from the date of termination. This could be because the policy has come to the end of its lifecycle and was not renewed, or else you or the insurance company decided to stop the cover during the term of the policy for some reason.

Ultimately, a cancelled policy stops providing cover on a specific date, with prior notice for the policy holder and within the terms of the policy. Cancellation can come at the policy holder’s request or perhaps due to non-payment, but coverage before this time still exists.

Discover your next insurance policy with GasanMamo

Whether you’re looking for health insurance, travel insurance, or landlord insurance, GasanMamo has the perfect policy just for you. With years of experience across multiple insurance sectors, our expert team can guide you through your insurance policy needs.

Why not get in touch with us for a chat to help you decide on the right type of coverage? You won’t believe how this can give you true peace of mind and help you relax.

Focus on your life and let us sort out protection for you and your loved ones. Discover the best insurance for your lifestyle by getting in touch for a chat  with our friendly team.

GasanMamo Insurance is authorised under the Insurance Business Act and regulated by the MFSA.

Photo by Dmytro Skrypnykov from Getty Images