Crynodeb
The Insurance Act 2015 reformed the law of insurance disclosure and warranties for commercial (non-consumer) insurance. It replaced the duty of utmost good faith with a duty of fair presentation, reformed the law of warranties (breach suspends rather than discharges liability), and abolished 'basis of contract' clauses. As amended by the Enterprise Act 2016, it implies a term requiring insurers to pay claims within a reasonable time.
Pwyntiau allweddol
- Duty of fair presentation: the insured must disclose every material circumstance known or which ought to be known (s.3)
- Proportionate remedies for non-disclosure (depending on whether deliberate/reckless or innocent)
- Breach of warranty suspends insurer's liability; liability resumes when breach remedied (s.10)
- Abolition of 'basis of contract' clauses (s.9)
- Contracting out is permitted but subject to transparency requirements (s.16)
- Implied term to pay claims within a reasonable time (s.13A, added by Enterprise Act 2016)
Rhannau ac adrannau
Hanes diwygiadau
2016 — Enterprise Act 2016
Inserted s.13A, implying a term that insurers must pay claims within a reasonable time, with damages for late payment.