Insurance and convictions – A simple guide

Summary

This information provides a quick summary of the issues facing individuals with unspent convictions when purchasing insurance. It applies to ‘consumer’ insurance only. This includes home (buildings and contents) insurance, as well as personal motor insurance. For more information, and for details on commercial insurance, these can be found in our detailed guide.

Key facts

1. You only have to disclose convictions if you are asked.
2. If you’re not asked directly, make sure you check any assumptions and terms/conditions of cover (you can usually find these in your policy documents).
3. If asked, you DO NOT have to disclose any convictions that are spent under the ROA.
4. If asked, make sure you get written confirmation of what you’ve disclosed.

Why am I asked about convictions?

Most insurance companies ask about criminal convictions because they believe it is relevant to the risk. Although this often seems unfair, they are entitled to ask.

If asked, you need to answer this question honestly and accurately. The questions will normally include the convictions of everyone covered by the policy, such as children or a partner.

If you are not asked, you do not need to disclose.

Rehabilitation of Offenders Act

Once a conviction is ‘spent’ under the Rehabilitation of Offenders Act 1974 (ROA), it never has to be disclosed to insurers. This is the case no matter what question an insurer asks you. Detailed guidance on the ROA is available here.

How do I know whether my convictions are spent?

The ROA is complicated and you may not know whether your conviction is spent or not. However, there are a number of ways you can work out whether a conviction is spent. You can;

1. Use Unlock’s online disclosure calculator. (You’ll need the date of conviction and details of the sentence or disposal you received in court).
2. Apply for a copy of your basic Disclosure and Barring Service (DBS) certificate. Anything which appears on this will need to be disclosed to the insurance company.

If you’re not sure what’s on your criminal record, you can apply for a copy of your criminal record (often referred to as a Subject Access Request) from the ACRO Criminal Records Office.

When do I need to disclose?

You will need to disclose unspent convictions when you take out the policy (but only if you’re asked).

Generally, you do not need to disclose any convictions you receive during a policy until the renewal date.  It’s always worth checking that there isn’t an explicit condition in your policy which asks you to disclose..

During 2015, many insurers, brokers and price comparison websites rolled out MyLicence, a database which provides immediate access to information about a person’s driving records.  For further information see here.

What could happen when I disclose an unspent conviction?

Some insurers may:

• Refuse to offer you insurance
• Want to charge you more
• Impose special terms

If you already have a policy and disclose a new conviction, your insurer may cancel the policy or increase your premium.  Alternatively, they may agree to continue your insurance up until the renewal date.

What could happen if I do not declare an unspent conviction when asked?

If you are taking out new insurance, or already have a policy, it is quite possible that nothing will happen. However, you may be acting illegally and if your insurer does find out, your insurance could be cancelled or your premium increased.

How might convictions affect making a claim?

If you disclosed everything that you were asked about when you took out the policy, there should be no problem.

If you didn’t, your insurance company may ‘avoid’ the policy. This means they will treat it as if it never existed and will not pay out on your claim. This may leave you unable to replace what you have insured, such as your house, car or business.

What if my insurer refuses to pay a claim?

In some circumstances, you may be able to challenge an insurer who is avoiding your policy. If your insurer cannot settle your complaint, you can go to the Financial Ombudsman Service (FOS). The FOS deal with complaints in a way that takes account of both the law and industry good practice. They will consider whether the insurer asked clear questions, whether their decision was influenced and whether you failed to disclose recklessly, deliberately, inadvertently or innocently.

Where can I get insurance?

• Unlock publishes a list of brokers who specialise in insurance for people with unspent convictions, as well as a list of motor insurers who do not ask about non-motoring convictions.
• There may be other insurers who are able to provide some cover for people with some unspent criminal convictions. Take extra care when seeking insurance from an insurer who does not ask questions about criminal convictions. Check any assumptions and terms/conditions of cover.
• If you are asked about convictions, ask for written proof that shows you have disclosed your conviction. You can use this if disclosure is disputed at claim stage.