Drinking Problem ? Tell your Insurance Company

This is what utmost good faith requires, at least in British Columbia.

Michael Thomas of Vancouver firm Harper Grey summarises the factual background thus:

The Insured was a 52 year-old woman who had a long-standing problem with alcohol, but had never been diagnosed as being an alcoholic. She purchased a policy of travel insurance from the Insurer prior to travelling from her home in Vancouver to Denver, USA. At the time she purchased the policy, the Insured made a declaration that she was "in good health" and knew of "no reason to seek medical attention…".

The evidence adduced by the Insurer at trial showed that the Insured had been hospitalised the night prior to making the declaration after she had taken a prescription narcotic while in a state of a gross intoxication. The Insurer denied the Insured’s claim on the basis that she had failed to properly disclose the state of her health at the time the policy was purchased.

On those facts, the decision that the policyholder had failed to make full disclosure is understandable, even if not necessarily immune to criticism.

Note: Michael Thomas's RSS feed is accessible here