Suppose you live in a student house on the Breestraat and take out a contents insurance policy for your bicycle and laptop. Failing to mention that three housemates also regularly use your belongings may later lead to unpleasant surprises. The duty of disclosure, laid down in Article 7:928 BW, requires that all facts relevant to the insurer be disclosed when taking out the policy.
Which information falls under the obligation?
This concerns circumstances that would have caused the insurer to question acceptance, premium or terms. Think of medical history for a life insurance policy, previous claims under a motor policy or renovation details for a buildings insurance policy. In Leiden, with its narrow city-centre streets and intensive cycling culture, this applies for example when insuring a car that is also used by fellow students on busy routes such as the Stationsweg.
Consequences of non-compliance
If the insurer discovers the non-disclosure only at the time of a claim, three statutory outcomes apply (Articles 7:929-930 BW). Where a higher premium would have applied, a proportionate reduction of the benefit follows. If the policy would never have been concluded, full refusal may follow provided this is notified in writing within two months. In the event of intentional misrepresentation, all entitlement to benefit lapses and the insurer may terminate the contract.
Higher premium on honest disclosure
Example: a Leiden cyclist fails to disclose that their car is also driven by housemates on the narrow streets around the Pieterskerk. In the event of damage the benefit is reduced by 40 per cent.
Rejection where acceptance would have been refused
A chronic condition not disclosed when taking out an occupational disability insurance policy may lead to total rejection, provided the insurer notifies this in good time.
Aggravated variant in practice
For life, occupational disability and health insurance policies an aggravated duty applies. You must also spontaneously provide information that you reasonably consider relevant, such as previous burnout trajectories or criminal convictions, even without an explicit question.
Leiden examples from practice
- Motor: failure to disclose that the vehicle is regularly used by others on the busy Stationsweg — benefit substantially reduced
- Home: Airbnb letting of a room in a building on the Rapenburg concealed — fire damage fully rejected
- Life: medical history not disclosed on inception — beneficiaries receive nothing on death
Protection against disputes
Three concrete steps help: answer all questions fully and retain the application form together with correspondence. Report interim changes such as renovation or a new user immediately. In doubt? Contact the Juridisch Loket Leiden or a specialist at Stationsweg 26.
What if a conflict arises?
The burden of proof rests on the insurer. It must demonstrate that you knew the fact, that it was relevant and that the decision would have been different. If it fails to do so, full benefit follows. In the event of ongoing disagreement you may apply to Kifid or a lawyer specialising in insurance law. Cases from Leiden are heard by the Rechtbank Den Haag. For personal advice you may contact Arslan Advocatuur, Stationsweg 26, 2312 AV Leiden (071 - 5200 200).