If a proposer for motor insurance fully discloses family history but the insurer takes no further action, what is the likely outcome during a claim?

The situation involves the principles of utmost good faith, known as "uberrima fides," which underpins insurance contracts. When a proposer fully discloses relevant information about their family history, they are meeting their obligation to inform the insurer of any material facts. If the insurer does not take further action—such as requesting additional details or making further inquiries about this disclosed information—it indicates that the insurer accepted the information provided as sufficient for the purpose of underwriting the policy.

In this case, if a claim arises, the insurer cannot later claim that the proposer failed to provide full disclosure, since the insurer had the opportunity to seek additional information and chose not to do so. As a result, the claim is likely to be met in full because the proposer has adhered to their duty of disclosure and the insurer effectively accepted that disclosure as complete and satisfactory.

The outcome heavily relies on the insurer's response to the information provided. Since the insurer took no further action after the full disclosure, they are bound by their acceptance of the information as sufficient, resulting in the claim being honored.