When buying insurance, be it motor, travel, home or life policy, you are required to complete a proposal form. A contract of insurance is based on the principle of utmost good faith and the information contained in the form will be the basis upon which the insurance contract between yourself and your insurer will be concluded. It is the responsibility of the person requesting insurance (“the insured”) to reply correctly, to the best of his knowledge, to all the questions in the proposal form.
Maltese courts have pointed out that it is the duty of the insured to inform and disclose to the insurer the information requested in the proposal form so that the contract may be entered into on an equal footing. Should at any point, during the duration of the policy, the insurer discover that important information had been withheld by the insured, it may choose to cancel the policy and reject any claims. In addition, the insurer may also have the right to claim back any money which it may have paid in claims.
Normally, you are asked a series of questions which would help your insurer understand who you are and what risk you pose. These may include personal questions on your criminal conduct, health and income. Remember that the employees of the insurer are bound with professional secrecy and information you provide to them will be used strictly in relation to the insurance policy you are applying for. Your answers will form the basis as to the type of cover you are offered and the premium you are charged.
Apart from the usual personal and contact details, the information you are asked by your insurer varies depending on the type of cover purchased.
