Non-disclosure
Following protocols set out by the Association of British Insurers and the Financial Ombudsman Service, LV= has outlined its stance on the way it handles claims where material facts were not disclosed at the application stage.
The provider has said it will pay valid claims in full where there is innocent non-disclosure and that it will pay proportionate claims where there is inadvertent non-disclosure.
However, it has stated it will cancel the policy from the onset where there is reckless non-disclosure. But where the non-disclosure is not linked to the cause of claim LV= has said it may still pay a proportionate claim. Fraudulent or deliberate non-disclosure, however, will, under no circumstances, be accepted and LV= will refuse to pay the claims and will void the policy from inception.
Stuart Tragheim, directory of intermediary business at LV=, said that the provider did not want to be seen to be shirking paying out of claims but insisted customers need to ensure they understand what is expected of them.
