Insurance Act – not long now

With the Insurance Act Reform 2015 only a few months away, it’s good to see many of our brokers getting to grips with the changes – ready for the August 2016 deadline.

The Act is to bring commercial insurance law up to date and fit for the 21st century insurance market and will clarify commercial insurance law in three key areas:

• the pre-contractual duty of disclosure and the effect of representations at that stage
• the effect of warranties contained in the policy
• an insurer’s remedies for fraudulent claims (universal to both commercial and personal lines)

We welcome these changes. The reform is about treating customers fairly in the truest sense along with protection for those who get it right. It will create a greater level of trust between insurer, broker and customer, providing transparency and peace of mind for all parties.

Here’s a reminder of the changes:

Insurance Act 1

Insurance Act 2





















Here’s an update on what we’ve been doing to embrace the Act:

Duty of disclosure and representation
• We’ve reviewed our policy wording for the purpose of misrepresentation to make it clearer and to meet the requirements of Act
• We’re worked with you and software houses to review question sets to align the provisions of the Act

Remedies for warranties within a policy
• We’ve always used Conditions Precedent to Liability – breach of the condition must have had an impact/influence on the claim in order to be used as a defence in refusal of claims
• We’re made some minor changes to the wordings in terms of basis of contract clauses

Remedies for fraudulent claims
• Fraud conditions within Documents of Insurance have been reviewed and have been updated to reflect the requirements of the Act
• Claims working practices, reference material and call guides around fraudulent claims are being updated as well as necessary internal training

Click here for more information

Categories: Commercial Lines, Personal Lines


Leave a Reply

%d bloggers like this: