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The 2015 Insurance Act (2015 Act) applies to all commercial contracts of insurance, and variations to existing contracts of insurance, from 12 August 2016 and introduces what the UK government has described as “the biggest reform to insurance contract law in more than a century”.
The Act is the result of a review by the Law Commission and Scottish Law Commission. It introduces substantial changes to the laws governing disclosure in non-consumer insurance contracts; warranties and other contractual terms; and insurers’ remedies for fraudulent claims.
Under the Act, business policyholders are required to make a fair and accurate presentation of risk before entering into a contract of insurance. The duty of fair presentation requires policyholders to disclose every matter which they know about, or ought to know about, that would influence the decision of an insurer of whether to insure the risk and on what terms.
For example, under the new Act:
The Act also makes changes to the remedies for breach of the duty of pre-contractual disclosure.
Previously, an insurer was able to refuse all claims if the policyholder failed to properly disclose any risk before entering into the insurance contract. Instead, the Act has introduced a range of proportionate remedies.
Registered office: 61 Friar Gate, Derby, Derbyshire, DE1 1DJ
Adrian Mooy & Co is the trading name of Adrian Mooy & Co Ltd. Registered in England No. 05770414
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61 Friar Gate Derby DE1 1DJ