The agent's role in disclosing material facts

Yong Sheng Goldsmith Pte Limited v Liberty Insurance Pte Limited [2011]

This interesting case looks at the question of disclosure of material facts and the role that agents can play as a conduit between insurer and insured.

The Facts

The Claimant was a jeweller and held insurance with the Defendant company under a jeweller’s block policy. An armed robbery took place at the Claimant’s premises and the Claimant duly made a claim under the policy.

The Defendant sought to void the policy on the ground that there had been material non disclosure. They suggested that the Claimant should have advised they had been subject to harassment from a loan shark. The Claimant alleged that the information had been disclosed to the Defendant via the Defendant’s agent. This agent had dealt with the policy and the renewal process.

The Finding

Even thought the agent acted for a number of insurers the court found that he was the agent of the Defendant company, one reason being that he was registered as an agent of the Defendant. As he had knowledge of the loan shark this knowledge was imputed to the Defendant.

Comment

Again this case stresses the need for full disclosure of material facts. The insured would have been left in some difficulties had the material facts not been communicated to the agent. Insureds should make sure that all material facts are disclosed – and keep the documentation. It could prove invaluable in the event of a claim!