From time to time various acts of legislation appear that can be of significant importance to merit discussion.
One of these is The Insurance Act 2015
The legislation is seeking to create a new and fairer balance between policyholder and insurer. The main provisions of the Act give effect, with some modifications, to the recommendations made in July 2014 by the Law Commission and Scottish Law Commission.
The changes will have a significant impact on how insureds and insurers approach policies, creating new duties for insurers and policyholders to comply with.
The Act deals with:
· Duty of disclosure, both before a contract incepts and when amended
· Warranties (including basis of contract clauses)
· Terms not relevant to the actual loss
· Fraudulent claims by insureds
· Good faith
· Amendments to the Third Parties (Rights Against Insurers) Act 20101
Please click here to find a CCRS briefing document which will provide some clarity. If you wish to discuss the document further, please do not hesitate to contact our office where we will be happy to help.