If a customer knowingly omits a severe condition on their application, what type of non-disclosure is this?

When a customer knowingly omits a severe condition on their application, it is categorized as deliberate or reckless non-disclosure. This type of non-disclosure occurs when the individual is aware of the relevant information but chooses to hide it, whether to secure a better premium, coverage, or to evade underwriting scrutiny.

Deliberate or reckless non-disclosure is a serious issue in the insurance industry because it directly affects the insurer’s ability to assess risk accurately. By withholding significant medical history or conditions, the customer is fundamentally undermining the contractual relationship based on trust and full disclosure that is essential for insurance agreements.

In contrast, other types of non-disclosure, such as accidental or inadvertent non-disclosure, imply a lack of understanding or unintentional omission rather than a conscious choice to hide critical information. Therefore, in this scenario, the customer's choice to omit such serious information is rightly recognized as deliberate or reckless non-disclosure.