Insurance Law Reform

The days of insurance policies that fail to pay out because of small errors on application forms may be numbered.

Currently, under 100 year-old laws, insurance companies can be within their rights not to settle a claim if it emerges that the applicant made mistakes or failed to disclose all relevant details when applying for a policy.

The Law Commission (covering England and Wales) and the Scottish Law Commission have jointly published a paper outlining a new legal regime where applicants who make innocent mistakes or omissions will not lose their insurance cover.  The proposed changes will also address how insurance companies may be protected against deliberate dishonesty or recklessness.

The proposals will become law if they successfully pass through a period consultation and discussion, meaning policy holders will be able to have more confidence in their insurance cover and will not have their claims rejected for insignificant reasons.

For further details on how this may affect your situation, please contact Alistair Latham or Mark Daubney.

Back to news listing