From CompliNEWS | Financial Service Intelligence Watch

Seepi v King Price Insurance Company (material non-disclosure, Short-term Insurance Act)

Gauteng High Court (Pretoria)

Parties: Seepi v King Price Insurance Company
Judgment Date: 21 December 2023
Key Points: Insurance contracts, material non-disclosure, Short-term Insurance Act 53 of 1998, section 53(1).


Mr Seepi had an insurance policy with King Price for his 2016 Mercedes Benz C220. In August 2017, he filed a claim after his car was written off. However, King Price refused to pay, saying Mr Seepi hadn’t told them about two previous accidents while he was insured by Outsurance. Mr Seepi then sued King Price for R300 ,000 – the value of his car minus what he got from selling the wrecked vehicle.


Justice Lenyai looked into Mr Seepi’s argument that the incidents King Price mentioned were minor and involved a different car. These were a chipped windscreen and a damaged side mirror, which he repaired himself for R700, instead of making claims. Seepi thought King Price would find out about these incidents through an ITC check. Justice Lenyai pointed out that by not disclosing these facts, which he knew were important for the insurance risk and premium, Seepi gave King Price grounds to reject his claim. She found that Mr Seepi admitted during cross-examination that he knew these facts, they were important, and he should have shared them for a proper risk assessment.


Mr Seepi’s claim against King Price was dismissed, and he was ordered to pay the legal costs.

Read the Judgment here