LEWIS V NORWICH UNION HEALTHCARE LTD

[2009] EW Misc 2 (EWCC), Central London County Court, Recorder West-Knights QC, 26 January 2009

Insurance (health) – Assured failing to disclose visit to doctor – Insurers avoiding policy – Inducement – Whether insurers able to prove inducement without evidence from actual underwriter – Waiver of disclosure

On 1 January 2000 the assured was issued with an income protection health policy. The proposal form was completed by his agent. The assured did not disclose a visit to his GP during which he complained of a stiff knee, although nothing untoward was found. In 2002 the assured was forced to give up work, and the insurers relied upon non-disclosure. The underwriter responsible for writing the risk did not give evidence. The court found that the visit was material, that information in respect of it had not been waived (given that the assured’s agent was aware of what had to be disclosed) and that the insurers were unaware of the visit. However, the court further ruled that the insurers had not proved inducement. In the absence of evidence from the underwriter in question, the court was not satisfied, from the evidence of another underwriter and of the insurers’ general practice, that the underwriter in question would have refused the risk or imposed an exclusion, particularly as it had been shown that the underwriter had not in other respects acted prudently (eg by not awaiting the results of an allergy test before issuing the policy).