The following Practice Compliance guidance note provides comprehensive and up to date legal information covering:
The Insurance Act 2015 (IA 2015) came into force on 12 August 2016, and has brought about a clarification of existing law. The changes relate particularly to:
duty of disclosure
fraudulent claims, and
This Practice Note, which is produced in conjunction with Professions at Lockton Companies insurance brokers, outlines a summary of the changes and what they mean in practice. The current view is that the changes will generally be beneficial to insureds, particularly non-consumer clients. The changes also remove some of the more draconian measures previously available to insurers—one aim of which is to reduce the number of legal disputes.
The old duty to disclose all known (or which ought to be known) material circumstances to an insurer has been replaced by a duty to make a 'fair presentation of the risk'.
As the insured party, there are two ways to meet this requirement:
disclose all material circumstances of which the you are aware (or ought to be aware)—you will need to make a reasonable search for information, and enquiries of your senior management team/those responsible for insurance, or
provide enough information to put a prudent insurer on notice that it ought to be making further enquiries to reveal material circumstances
All representations must be substantially correct and made in good faith. Any information disclosed
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234