Welsh translation. This page is translated from the canonical English version for general information. UK legal terms do not always translate exactly — check the English source for legal decisions and seek professional advice for important matters. The English page is authoritative.
Crynodeb
The Insurance Act 2015 is the most significant reform of insurance contract law in over a century. It replaces the duty of disclosure under the Marine Insurance Act 1906 with a duty of fair presentation, reforms the insurer's remedies for breach (introducing proportionate remedies instead of automatic avoidance), abolishes basis-of-the-contract clauses, and provides a new default regime for late payment of insurance claims.
Pwyntiau allweddol
- Replaces duty of disclosure with duty of fair presentation (s.3)
- Insured must disclose material circumstances in a manner reasonably clear and accessible (s.3(3))
- Proportionate remedies for qualifying breaches — avoidance only for deliberate/reckless breaches (s.8, Sch.1)
- Abolishes basis-of-the-contract clauses (s.9)
- Implied term that insurers must pay claims within a reasonable time (s.13A)
- Contracting out permitted but with transparency safeguards (ss.16–17)
- Duty of fair presentation: the insured must disclose every material circumstance known or which ought to be known (s.3)
- Proportionate remedies for non-disclosure (depending on whether deliberate/reckless or innocent)
- Breach of warranty suspends insurer's liability; liability resumes when breach remedied (s.10)
- Abolition of 'basis of contract' clauses (s.9)
- Contracting out is permitted but subject to transparency requirements (s.16)
- Implied term to pay claims within a reasonable time (s.13A, added by Enterprise Act 2016)
Rhannau ac adrannau
Hanes diwygiadau
2016 — Enterprise Act 2016
Inserted s.13A, implying a term that insurers must pay claims within a reasonable time, with damages for late payment.