What is the effect on the insurance company's obligations if an insured fails to report a claim timely, based on intermediary advice?

When an insured fails to report a claim in a timely manner based on intermediary advice, the insurance company's obligations are not affected. This means that even if the insured delays in notifying the insurer about a claim, the insurance company is still obligated to address the claim according to the terms of the policy.

It's important to note that while timely reporting is generally encouraged and may be a requirement within the policy, failure to meet this requirement does not automatically void the policy or lead to an automatic denial of the claim. The insurer may still evaluate the claim on its merits and could choose to pay it based on the circumstances, provided that there is no significant prejudice to the insurer's ability to investigate or respond to the claim.

Understanding the nuances of claim reporting is crucial for insured individuals, as it ensures they are aware of their rights and obligations under their insurance policy.