On 12th August 2016, the Insurance Act 2015 came into force. The new Insurance Act has been recognised as one of the insurance industry’s most fundamental changes to the Law in England and Wales and is the first law replacement since 1906.
The Act is designed to provide more up to date framework for commercial insurance throughout England and Wales and will have a focus on the rules that govern the contracts between commercial policyholders and insurers. The new Act will also replace certain aspects of the Marine Insurance Act 1906. This new Act will only apply to businesses entering contracts after 12th August 2016 and will affect all policies subject to laws of England and Wales, Scotland and Northern Ireland.
The Act has updated the statutory framework for insurance and contracts in the following areas: Disclosure and misrepresentation in business and non-consumer contracts. Insurance warranties in consumer and non-consumer insurance contracts. Fraudulent claims in consumer and non-consumer contracts.The Act will also be introducing the Third Party (Rights against Insurers) Act 2016.
For more information on the changes to the Act, please visit the Legislation.gov.uk website for a much more detailed insight.