Imagine a transport operator with a warehouse on the Zevenheuvelenweg in Tilburg completing the application form for a business liability insurance policy. He forgets to mention that lorries regularly travel via the A58 to distribution centres. That single detail can change everything later.
What must you disclose when taking out insurance?
The law (Article 7:928 BW) requires you to provide all facts the insurer needs to assess the risk correctly. This includes previous claims, structural alterations to a building or changes to the vehicle fleet. For life insurance this concerns medical history; for buildings insurance it concerns letting via platforms or renovations.
Consequences of non-disclosure in practice
If the insurer discovers the omission only after a loss, three statutory outcomes apply (Articles 7:929-930 BW). Where a higher premium would have applied, a proportionate reduction in the payout follows. If the policy would have been refused outright, complete rejection may follow provided this is notified in writing within two months. Intentional misrepresentation results in forfeiture of any right to payment, even for subsequent losses, and termination of the policy.
Higher premium upon full disclosure
A Tilburg logistics company that failed to disclose that young drivers were also at the wheel received only sixty per cent after an accident.
Rejection in cases of serious negligence
In a life insurance case a chronic condition was not disclosed; after death the insurer refused any payout.
Enhanced duty of disclosure — what does that mean?
A stricter duty applies to life, disability and health insurance. You must then also spontaneously provide information you consider relevant, even without an explicit question. Criminal convictions, previous burnout trajectories or medical complaints fall under this heading.
Practical examples from Tilburg
- Logistics: failure to disclose that a lorry is also used by third parties — payout reduced after damage on the A58
- Textile premises: Airbnb letting of part of the business premises on the Spoorlaan concealed — fire damage fully rejected
- Disability: previous burnout trajectory not disclosed — claim refused
How do you avoid problems?
Keep the application form and all correspondence carefully. Answer questions generously and report interim changes immediately, for example a new director or renovation. In case of doubt, contact with a specialist is advisable.
Resolving disputes via the court in Breda
The insurer bears the burden of proof. It must demonstrate that you knew the fact, that it was relevant and that it would have acted differently. If it fails to do so, it pays out in full. In the event of ongoing disagreement you can turn to the Juridisch Loket Tilburg or a lawyer. The Arslan office at Spoorlaan 350 is ready to assist; call 013 - 5300 300 or apply to the Rechtbank Zeeland-West-Brabant in Breda.