No puzzles

Many persons can easily solve the insurance puzzle presented by E. Agius (August 20). The principle underlying any insurance contract is "Utmost good faith" on both sides of the insurance contract.

Mr Agius, or any owner of a car, is obliged to report that a car will be driven by a person who has been refused insurance for his car. The insurance company will then decide whether to insure that car or not after considering the case.

Most proposal forms for insurance cover require the proposer to state clearly such facts. Non-disclosure that the car may be driven by a person who had insurance cover refused may render the insurance policy null and void and one can find oneself in great problems. The proposer is obliged to state any material fact that the insurance company has to consider in accepting the insurance cover.

The question Mr Agius should have posed is why did his insurance company, with whom he has been insured for a number of years, and he has a good past experience and is medically fit to drive, refuse now to give him cover. I would agree with Mr Agius that he had a raw deal from his insurance company if the history is good.

The puzzles mentioned do not exist.