AFCA Upholds Insurer's Decision on Claimant's Non-Disclosure

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The claimant, who had an accident last year, saw his claim rejected due to what was considered a misrepresentation of his driving history. When procuring the policy, he answered “no” to questions regarding licence restrictions and whether he had reached the maximum demerit points or accepted a good behaviour bond in the past three years.

It was revealed that the claimant had accumulated 13 demerit points in 2022 and opted for a one-year good behaviour bond starting April 2023 to evade licence suspension after a ‘careless driving’ offence. He attributed his oversight to ADHD and dyscalculia, which impairs numerical comprehension, claiming an honest mistake in understanding his driving record's severity.

AFCA acknowledged the man's learning disabilities but noted existing evidence showed he was aware of his legal proceedings and his decision to enter a good behaviour bond to prevent licence suspension. This indicated a conscious recognition of the bond, counteracting his argument of misinterpretation.

The ruling further asserted that had this driving history been disclosed, Auto & General would not have initiated the policy due to the claimant's maximum demerit points status and his being under 25 years of age. Consequently, the insurer deemed the risk unacceptable and maintained their stance of declining the claim as a reasonable action.

This decision underscores the importance of full disclosure when obtaining insurance policies and clarifies that while disabilities may affect understanding, known legal conditions must be disclosed to insurers.

Published:Thursday, 12th Jun 2025
Source: Paige Estritori

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