Is Failure To Adhere To Insurance Policy Conditions Always Problematic

Introduction

It is almost impossible to think of an insurance policy that does not have any conditions and/or warranties. Most insurance policies, if not all, have various conditions and warranties which, if they are not adhered to, may lead to a lawful rejection of one's claim. The conditions and warranties perform extremely important functions in an insurance policy. For example, they guard against misuse of an insured item, they are intended to encourage an insured to ensure safety and good maintenance of an insured item, they serve to mitigate losses, etc. In turn, this ensures sustainability of the insurance industry, otherwise there would be chaos in the sense that policyholders would abuse insurance policies with ulterior motives, for their ultimate benefit. Insurers are well within their rights to reject claims in instances where there has been a failure, irrespective of how innocent that failure is, to comply with the contractual conditions