Quote:
Originally Posted by teaston
I'm pretty sure they do, the government put a stop to insurance companies not paying out for modifications which didn't affect the claimed for incident. Insurance companies were taking the piss a few years ago, they even refused to pay out because a women had window stickers in her car!! But apparently all that has stopped now.
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That got me thinking and I believe you're correct.
FCA Handbook - Insurance: Conduct of Business
Cases where rejection of consumer’s claim is unreasonable: contracts on or after 1 August 2017.
8.1.2B
For contracts entered into or variations agreed on or after 1 August 2017, a rejection of a consumer policyholder's claim for breach of a condition or warranty (that is not subject to and within section 10 or 11 of the Insurance Act 2015) is unreasonable unless the circumstances of the claim are connected to the breach.
I read that as saying it is unreasonable for an insurance company to reject a claim if the breach of condition (i.e. policyholder not declaring a modification) is not related to the circumstances of the claim. E.g. they can't reject a claim for your car being keyed if you didn't declare your car was remapped.
Source: https://www.handbook.fca.org.uk/handbook/ICOBS.pdf