Debt Questions forum. General questions on debt issues.

Moderators: TalbotWoods, JaneClack

By rikw
#329463 Forwarding on from the previous topic I have debated the subject of CCJs with a few technical advisors. Although the question is not asked when having a quote, it will be assumed that you dont have any CCJs. If the statement of fact states this then a CCJ has to be declared has it could invalidate the policy in event of a claim. Anyone who for instance have landlord's policies, self employed and even domestic home policies should double check their documents. In regards to a motor policy this would not affect a payment to a 3rd party, but may impact on settlement of your own damages.
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By TalbotWoods
#329593 I have spoken to an insurance underwriter today about this. The reason why it is asked if a CCJ has been issued come in two areas.

Firstly if they ask at application, then they are looking at if there is a risk with you paying monthly, if you have a CCJ some brokers and companies will insist on full payment. These tend to be companies that have been stung before because they 'borrow' the full cos themselves then let you pay it off by instalment, if you default then they loose money, though tat tend not to ask at application tend to have in house insurance so dont have to borrow to buy in the insurance!

Secondly if you make a claim, they need to know as it can be an indicator of fraudulent activity, if a person has suddenly developed a few CCJs, then makes a weak claim on the insurance (first party as in fully comp) then they have to be sure it is not a 'fiddle', as these are adding huge amounts to our insurance each year. If it is just a third party claim, then they dont worry, it is only if you are claiming for yourself.

They also added that they will often not ask this UNLESS they thinks something is wrong with the claim whilst they assess it, obviously if you had fully comp and were hospitalised by an uninsured driver, then they will pay up and normally not ask, as that is a strong claim, but if your car is 'nicked' from the garage that you "may" not actually have because you live in a tower block, whilst it had £1K of sound system inside along with brand new alloy wheels, then they will class this as a weak claim so will fully investigate to avoid a fraudulent claim!

So there is another explanation, it is not about stopping you having insurance it s more about being sure there is no fraudulent aspect to a claim