Looking at another forum there is concern that many insurance companies are discriminating unfairly against bankrupts. On some proposal forms you have to declare if ANY member of the household has EVER been declared bankrupt, there is a case where an insurance claim was declined because the son had been declared bankrupt years previously.
The insurers line is that Bankrupts are a higher fraud risk!
I cannot beleive that bankrupts basically have a longer penalty in having to declare their "crime" than a murderer or rapist
Hi on track.
I can completely understand why you and others would consider this to be very unfair.
Some insurers that take this view may argue that they're basing this attitude upon their actual claims history for policies that they've issued.
The good news is that there appear to be insurers that are more open-minded (perhaps because they have a different claims history). The subject does arise in the forum from time to time, but on every occasion I can remember the poster was able to find a policy that met their needs with an appropriate insurer.
I think the most difficult area is that of insurance related to business. One of our members (Hamish) who has professional experience of working in insurance has shared some really good information on this subject though when it has been causing problems for other members.
I am not so much concerned about obtaining a competitive quote, rather the wider implications of having a lifetime "crime" on record. For example what if someone was made bankrupt in their twenties and say thirty years later there was an insurance claim by a new partner who knew nothing about the bankruptcy. It would be possible for a claim to be denied leading to a loss of potentially thousands or worse
Hi on track
I completely agree. If you looked at things logically, the Trust Deed or sequestration deals with an individual's debts and therefore in the period after the Trust Deed/sequestration the person has no debts. Their income will allow for expenditure for car HP, insurance etc etc. So would that person not be a lesser risk?
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.