How you buy insurance and how your insurance policy works will both be significantly impacted by The Insurance Act 2015, which comes into force on the 12th August 2016.
Our series of 5 Insurance Act 2015 blogs will help you understand what the changes are, and how they will affect you and your insurance cover.
The Act address three key issues in commercial insurance law that have caused problems for policy holders.
- The pre-contractual duty of disclosure and the effect of (mis)representations at that stage;
- The effect of warranties contained in the policy; and
- The insurer’s remedies for fraudulent claims
We will examine each area to explain what it means and how it affects you, so do check back daily for the next part of the digest.
The new Act creates a new “default” way for insurers and policyholders to do business. We will also explain how it will be possible for insurers to “contract out” of certain elements of this new way of working. This means that insurer can revert to the old way of working, as long as it is done in a ‘transparent’ manner, and the policy holder is clear about the disadvantages of this way of working.
In the following blogs in this series, we will explain the news rules and requirements.
The Act applies to England, Wales, Scotland and Northern Ireland, so any policy which is subject to the law and jurisdiction of these territories will be governed by the Act. That means it doesn’t cover policies arranged in the UK for risks outside of the UK, eg an airline based overseas ensuring all their aeroplanes via Lloyds of London. (We don’t broker many deals like that!) These changes will apply to the majority of SMEs and Not for Profit organisations in the UK.
There’s a lot to take in, and a lot of significant changes, so do keep checking back for the other blogs in the series.
- What is the Insurance Act 2015?
- What do I have to tell my insurer?
- What are my responsibilities once my insurance cover starts?
- What is the impact of making a Fraudulent Claim?
- What is Contracting Out?
Give us a call or drop us an email at any stage with any questions about the Insurance Act 2015 and how it will impact your organisation. We’ll be happy to answer any questions and ensure that you are confident about the insurance you have in place.