Reforming Insurance Law

Insurance law is an area which has remained unchanged for over 100 years. The Insurance Act 2015 (the Act) will have a significant impact on non-consumer insurance contracts post 12 August 2016.

The old law

The insured is under the duty of utmost good faith to disclose all facts material to the risk insured. Every material circumstance would influence the insurer in deciding to take the risk and when quantifying the premium. The smallest adjustment to the premium constituted materiality. A material non-disclosure (even if innocent) which increased the risk gave the insurer the remedy to avoid the policy. The new law under the Insurance Act 2015

The duty of "fair presentation" – 2 part test

First limb – duty to disclose information which the insured knows or ought to know having conducted a reasonable search

Whilst the duty to disclose remains, the Act requires the insured to...