Many experts consider The Insurance Act 2015, which comes into force later this month, and what it means for insurance claims, to be the biggest shake-up in insurance law for over a century. Its changes are aimed at businesses and corporations, rather than consumers, and most crucially changes the principles surrounding disclosure and penalties for non-disclosure.
The Act changes correct practice in dealing with insurance claims amongst other areas for insurance companies as well as for insured parties, but the most important things for businesses to be aware of are:
- Instead of a vague obligation to reveal all circumstances affecting the insurer’s decision, the Act introduces a “duty of fair presentation”. This defines matters deemed to be known as those held in their records, those available to senior management and those available to a responsible person, such as a broker.
- Previously, insurers could declare the policy invalid for any non-disclosure (e.g. if windows weren’t locked as declared, even if the insurance claim were for flood damage). The Act gives a sliding scale of remedies for insurers, depending on how serious the breach is, ranging from invaliding the whole policy to reducing the cover.
- The Act specifies that, while a specific insurance policy may be agreed by both parties outside the terms specified in the Act, the insurance company must clearly explain the differences and their implications.
The Act makes it even more crucial than before that all relevant parties are involved in setting up a commercial insurance agreement, to ensure that nothing that should be disclosed is overlooked. This is always best undertaken with the advice and expertise of a professional insurance broker.
Allied Claims, who offer an expert loss assessor service specialise in property and business insurance claims, encounter situations that stretch the imagination, but that’s nothing to excuses given in other sectors. Here are just a few of the reasons we avoid car insurance:
- “To avoid a collision I ran into the other car.”
- “The telephone pole was approaching and I was attempting to swerve out of its way when it struck the front end of my car.”
- “First car stopped suddenly, second car hit first car and a haggis ran into the rear of second car.”
Advice from Our Blog
Our blog gives regular updates on the insurance sector, though regrettably we’ve no advice on how to avoid being hit by a haggis.
If you want to know what insurance claims have in common with treating cancer, check out the post on the many uses of Thermography, while our explanation of the Proximate Clause is essential reading to anyone who wants to make sure they have all eventualities covered in their policy.
Have a Great Month