New insurance law protects customers
INSURERS will no longer be able to reject claims because consumers have accidentally failed to disclose details when applying for cover following changes to insurance law.
Treasury economic secretary Chloe Smith told the Commons the new legislation reflected existing market practices and updated the 1906 Marine Insurance Act.
“This Bill replaces the current burdensome duty that the consumer provide all information that might influence the judgment of a prudent insurer,” she said.
“Instead they must take reasonable care to answer the insurer’s clear and specific questions.
“This Bill will also mean that penalties for non-disclosure or misrepresentation are proportionate, rather than allowing the insurer to legally void the contract at all cases.”
The Bill was passed unopposed at a third reading.