Observance of conditions
Policy conditions compliance: All car insurance policies will contain a condition that requires the policyholder to be familiar with all the conditions of the policy and also to act upon then for the car insurance to be valid. For example:-
The due observance and fulfillment of the terms provisions conditions and endorsements of this policy in so far as they may relate to anything to be done or complied with by the insured and the truth of the statements and answers in the said proposal shall be conditions precedent to any liability of the Company to make any payment under this policy.
This condition links up with the declaration on the proposal form, making the truth of the answers in the proposal form a condition precedent to any liability and requiring the insured to fulfill his obligations under the policy before there can be any liability on the insurers. In certain cases it may have to be left to the courts to decide whether the failure of the insured to fulfill a particular obligation has jeopardized the position of the insurers and has thus entitled them to repudiate liability under the policy.
For example, if an insured fails to report an accident to his insurers as quickly as they might have required, the UK Courts may have to decide whether the Car Insurance company’s handling of the resultant claim has been prejudiced by the delay in reporting.