Insurers could not reject liability on the basis that the insured had deliberately or recklessly misrepresented his address when applying for insurance because there was no clear evidence about the precise wording of the questions which appeared on the computer screen at the time the online application was made.
Computer websites allowed the consumer to carry out a comparative search among various insurance companies to find suitable terms and premiums, enabling the consumer to proceed to purchase the chosen insurance online.
There was no clear evidence about the questions which appeared on the screen of both the comparative website and the chosen insurer’s website.
In the absence of such evidence the court could not find on the balance of probabilities that the address was deliberately or recklessly misrepresented.
There is a lesson here. If you are transacting business online you better keep a series of screenshots showing what was on the screen at any particular time.
The case is Southern Rock Insurance Co Ltd v Hafeez.