Professor Allan Manning, in a recent post “Beware two new exclusions in some motor vehicle insurance policies ”, to Professor Allan Manning’s Blog, raises the issue of some exclusions from cover in some common vehicle policies.

He identifies examples whereby what one might call reckless acts, previously covered are now not covered by certain insurers. The two he identifies relate to riving into water or illegally using a mobile phone.

Needless to say, the illegality of and consequences which can flow from use of a mobile phone whilst driving don’t have to be dwelled upon.

Given recent weather on the Eastern Coast of Australia, the number of instances of people driving vehicles into water and the particular circumstances of them doing so cant be counted.

More importantly, from my perspective, is whether, if the use of exclusions from cover increases significantly, does it have implications beyond the policy types in issues?

Will it reach the frequency stage that it upsets the policy and funding support which underlie the National Disability Scheme?

One can only hope that insurers will not see use of exclusions as a mechanism to reduce risk exposure and at the same time increase the field of operation and cost of NDIS.