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n Without Prejudice - They don't pay - they hassle (if they can) : insurance law
Bruwer vs Novak Risk Partners
S53 of the Short-term Insurance Act, 1998, limits an insurer's right to reject claims based on non-disclosure to instances where the non-disclosure "is likely to have materially affected the assessment of risk". The aim behind this provision is to protect policyholders against claims rejection by insurers based on negligible or trivial non-disclosures. The test for materiality is one of "a reasonable, prudent person" that is, would such a person consider that the information constituting the non-disclosure should have been disclosed so as to enable the insurer to form its own view concerning the effect of the information on the assessment of the risk or the premium charged. The test is an objective one.
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