Insurance & convictions
On this page:
The Issue
The Solution
What is available?
Home Insurance for reformed offenders
Motor Insurance for reformed offenders
Business Insurance for reformed offenders
If you need Insurance asap...
Petition to the Prime Minister
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The Issue
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Individuals with unspent criminal convictions are required to declare their convictions when applying for insurance. Under the Rehabilitation of Offenders Act 1974, a sentence of more than 30 months imprisonment or youth custody can never become spent and therefore individuals will be affected by this for the rest of their lives.
Unspent criminal convictions are considered material facts by the insurance industry. A material fact is one that is likely to influence them in the assessment or acceptance of the risk (the insurance). If an individual is in any doubt as to whether a fact is material, they must disclose it. Contrary to commonly held belief , individuals with unspent convictions must disclose irrespective of whether they are asked by the insurer.
If an individual does not declare their convictions they are breaking the law and could be prosecuted for attempted fraud. Additionally when a claim is made the insurer will not pay out. Insurance contracts are established on trust but insurers will thoroughly investigate claims, looking for reasons why they should not pay out the full amount or any amount at all. In other words, if you do not declare unspent convictions, the contract is void. They will take your money but they will not pay out.
The problem is that as soon as an individual does disclose their convictions they will immediately be refused insurance. Individuals suffer rejection after rejection, being totally excluded by the mainstream insurance industry. In a very few cases, people are offered insurance but at a massively increased rate, often double or triple the normal rate. Without buildings insurance, it is impossible to secure a mortgage. Many employment opportunities require people to drive, which requires motor insurance. Some reformed offenders opt for self-employment to avoid the discrimination in the employment market; this requires commercial insurance such as Public Liability. Insurance is key to many resettlement areas.
Anyone who has had or even heard of this experience is therefore encouraged not to declare their convictions at all. For the reasons above it is important that frontline staff do not reinforce this attitude but rather work to ensure that insurance is obtained legally for the benefit of all involved.
It is also important to note that this problem extends beyond the individual to entire families and households. Anyone securing household insurance must disclose if they have someone with unspent convictions living in the house. For example, if the staff were to secure accommodation for an offender in their own family home (which might well be considered ideal) but the family were not aware of this issue, they would suffer the issues above. A solution is required if families are not to be discouraged from providing accommodation.
The Solution
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UNLOCK is campaigning to change the insurance law and practice but we already have a working solution. As you may be aware UNLOCK is a charity made up of a membership of individuals with criminal convictions who have chosen to leave crime behind. Over the last few years Unlock has developed a competitive list of independent insurance brokers with a commitment to the need to provide insurance on fair terms.
There are quite a number of brokers on the list, so people can ‘play one against the other’ to ensure they can legally get real cover at a competitive price. Some brokers do have exclusions for certain offences but across the list we have ensured that everyone can get insurance, including those convicted of fraud, arson and sex offences. Access to the panel is free, and there is a link to the list at the top and bottom of this page.
Staff from any organisation can simply refer their clients to the list of insurers wherever problems arise. We provide all members of UNLOCK with the list of brokers who can secure insurance for people with criminal convictions. This empowers people to make a fully informed selection from a competitive range of quotes and secure an insurance policy that will genuinely protect them and their families.
What is available?
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Mainstream insurers are not interested in reformed offenders, so it can very difficult to secure insurance even with the most minor convictions, committed years in the past.
However, things have come a long way since UNLOCK started its work with insurance brokers in the year 2000. Through specialist brokers, reformed offenders can now get access to a wide range of insurances including: -
- Home Buildings
- Home Contents
- Motor Car
- Motorbike
- Caravan
- Travel
- Landlords
- Commercial / Business Premises
- Commercial / Business Contents
- Employer
- Public Liability
- Tradesman / Contractor
- Commercial / Business Vehicle
- Motor Trade
Home insurance for reformed offenders
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The experience of the vast majority of ex-offenders trying to get insurance is one of rejection after rejection. Insurance brokers and providers punish people for their honesty by discriminating against them because of their past, rather than considering their individual circumstances. This experience, or simply the fear of it, often encourages individuals not to declare their convictions at all.
However, if you do not declare your convictions your insurance company is unlikely to pay out in the event of a claim.
It does not matter whether they ask you the question. It is your responsabililty to disclose what insurers call "material facts". It is not illegal for insurers to increase the cost of the insurance when you disclose your convictions but remember that keeping them a secret means that you are paying for something which is worth nothing.
Motor insurance for reformed offenders
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It is an offence to drive a motor vehicle without insurance and with the advent of the MID (Motor Insurers Database) which was set up to trace an uninsured vehicle and to prevent fraud, it is possible to trace an uninsured vehicle. Furthermore, if you are involved in an accident, the police can also access the MID and can tell who the vehicle is registered to, who is the name of the insured and who can drive the vehicle. You also require insurance in order to purchase road tax for your vehicle.
The experience of the vast majority of ex-offenders trying to get insurance is one of rejection after rejection. Insurance brokers and providers punish people for their honesty by discriminating against them because of their past, rather than considering their individual circumstances.
UNLOCK has pointed out to underwriters that by not providing cover, they are denying the person the right to be legal not only in having motor insurance in place but in preventing them from taxing the vehicle. This experience, or simply the fear of it, often encourages individuals not to declare their convictions at all.
However, if you do not declare your convictions your insurance company is unlikely to pay out in the event of a claim.
It does not matter whether they ask you the question. It is your responsabililty to disclose what insurers call "material facts". It is not illegal for insurers to increase the cost of the insurance when you disclose your convictions but remember that keeping them a secret means that you are paying for something which is worth nothing.
If the insurer states that they do not need to know about your conviction, we would suggest that you get some form of confirmation in writing that either (a) they do not need to know about your conviction, or (b) they have noted your details on your policy and are able to continue cover.
Business insurance for reformed offenders
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NOTE: If you are NOT a reformed offender but you employ or wish to employ people with previous convictions click here for advice about insurance.
Several types of business or commercial insurances may be necessary if you have your own business, you work for large contractors as a bone-fide sub-contractor or you do work for a local authority or other government body
The experience of the vast majority of ex-offenders trying to get insurance is one of rejection after rejection. Insurance brokers and providers punish people for their honesty by discriminating against them because of their past, rather than considering their individual circumstances.
UNLOCK has pointed out to underwriters that by not providing cover, although it is not mandatory, they are deterring people from supporting themselves rather than relying on state benefits.
This experience, or simply the fear of it, often encourages individuals not to declare their convictions at all.
However, if you do not declare your convictions you are not insured.
It does not matter whether they ask you the question. It is your responsibility to disclose what insurers call "material facts". It is not illegal for insurers to increase the cost of the insurance when you disclose your convictions but remember that keeping them a secret means that you are paying for something which is worth nothing.
If you need insurance asap...
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Click here to download the UNLOCK Insurance Guide. This explains the issue surrounding Insurance.
Click here to find out where you can get Insurance from if you have any unspent criminal convictions.
We want to encourage you to discuss your experiences of the insurers that can provide cover to people with unspent convictions, as well as your experiences of other insurance companies who may have refused to, and you can do so anonymously by visiting the UNLOCK Forum.
Petitions to the Prime Minister - Insurance
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The government must make it obligatory for all insurance companies to offer insurance to ex-offenders with unspent convictions on a case by case scenario. Currently most insurers discriminate ex-offenders as a whole, which is unjust. It discourages them from declaring their convictions, leading an honest/legal life, and therefore increases the risk of possibility of re-offending.
To sign the petition, click here
Want to know more
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Want to know more about the insurance issue? Download the UNLOCKing Insurance Guide
Want to know the where to get insurance from? Download UNLOCK's List of Insurers
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