We would strongly advise that you do not lie. It is very easy for an insurance company to find your previous claims history. It is an unfortunate consequence of claiming that your premiums will be higher. The best way to get your premiums down again would be to drive incident free for a minimum of three years.

have a look at our article on Insurable Interest, hope it helps.

it is difficult for us to comment with the information you provided. On the face of it, it seems as if the regular driver may have not been the issue.

Was there possibly a material change in risk and did you update all of the details with the insurer? A couple of examples …

• Where is the car parked overnight or during the day, we assume that would have changed?
• Was the car possibly used for business use with the new “owners”?

Another issue could have been insurable interest. I.e. an insurer wouldn’t normally insure a risk for someone who is not the owner.

Fortunately you are able to lodge a complaint with the Ombudsman for Short Term Insurance. Their mission states … “To resolve short-term insurance complaints, fairly, efficiently and impartially”

I bought the vehicle from the dealer and received finance through ABSA VF. At some point I contacted ABSA VF informing them that I am struggling to keep up with instalments and accordingly requested advice regarding giving the vehicle back to ABSA VF with the understanding that the instalments would cease. I was told that even if I handed the vehicle back to ABSA VF I would still be liable to pay whatever was outstanding on the vehicle. This was not a feasible option to me as I was already struggling with instalments.
During the same time a colleague at work wanted to buy a car but could not get finance from the banks. She was aware that I wanted to “off-load” the vehicle and offered to take the vehicle off my hands. We agreed that I would hand the vehicle over to her on the following terms:
1. She pay a deposit of R 10,000;
2. She continue paying the instalments to ABSA VF starting on the 30th April 2009 and ending on the 30th October 2011;
3. She continue paying the insurance for the vehicle;
4. The vehicle will remain registered in my name and she takes full ownership only when all the remaining instalments were paid / settled.
On the 17th April 2009 I contacted my insurance broker and informed them that MRS. and MR X would be driving the car and requested that they change the insurance policy by adding them as drivers to the policy schedule. My broker informed the underwriters accordingly and on the 20th April 2009 informed me that the request was approved by the underwriters.
On the 24th April 2009 my broker emailed me a copy of the new policy schedule noting additional drivers added.
Once this was done MRS. X and I formally concluded our agreement by signing a contract for the provisional sale of the vehicle from me to her.
From my perspective at the time off the loss:
1. The vehicle was still covered by insurer;
2. All insurance payments were up to date;
3. Insurer was informed of the additional drivers;
4. The policy schedule was amended by adding the additional drivers to the policy schedule.
Please acknowledge receipt of this letter and advise if the details provided are in order.

Would the insurer be correct in rejecting this claim?