Bond Pearce

The Law Commission's consultation paper covers four areas:

  • damages for late payment of insurance
  • insurer's remedies for a fraudulent claim
  • insurable interest
  • policies of marine insurance.

It follows on from an earlier consultation on pre-contractual issues in consumer and business insurance. The subsequent report on Consumer Insurance Law resulted in the Consumer Insurance (Disclosure and Representations) Bill which is expected to come into force in the first half on 2012.  

 

The consultation highlights the issues around damages for late payment of an insurance claim.  Under English law, a policyholder is not entitled to recover loss suffered if an insurer wrongly delays or refuses to pay a legitimate claim under the policy.  The consultation paper gives a full analysis of the problems with the current legal position and suggests that the law should be changed if it is "unfair and out of line with accepted industry practice".

The consultation summary paper and response forms are available on the Law Commission website.

The consultation period ends on 20 March 2012.

To respond email: commercialandcommon@lawcommission.gsi.gov.uk

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