Tightening the payout rules for business insurance

Businesses can suffer serious loss if insurance companies delay paying claims. But under Law Commission reforms introduced into Parliament today, insurers would be obliged to make prompt payment or face a claim for damages. At the moment, insurers are under no legal obligation to pay valid claims within a reasonable time. If they pay unreasonably … Read more >

Project: Insurance Contract Law: Insurable Interest

Project status: Analysis of responses

Download the accompanying notes to the draft Bill Download the draft Bill Download the response form The problem At its simplest, the requirement for insurable interest means that, for a contract of insurance to be valid, the person taking out the insurance must be affected by the subject matter of the insurance. They must stand … Read more >

Project: Insurance Contract Law: Business Disclosure, Warranties, Insurers’ Remedies for Fraudulent Claims, and Late Payment

Project status: Complete

On 15 July 2014, the Law Commission and the Scottish Law Commission presented to Government recommendations for reform of the law in four areas of insurance law: The duty of disclosure in business and other non-consumer insurance The law of insurance warranties Insurer’s remedies for fraudulent claims Late payment of insurance claims These reforms would … Read more >

Project: Insurance Contract Law

This is a joint project with the Scottish law Commission. We began work in January 2006 when the teams at the two Commissions issued a scoping paper, inviting views on which areas of insurance contract law were in need of reform. In the light of the responses received, the teams published a second paper setting … Read more >

Project: Consumer Insurance Law: Pre-Contract Disclosure and Misrepresentation

Project status: Complete

The Law Commission and the Scottish Law Commission recommended the creation of a new consumer statute setting out what a consumer should tell their insurer before taking out insurance. The law under the Marine Insurance Act 1906 requires consumers to volunteer information about everything which a “prudent insurer” would consider relevant. We think this duty … Read more >

Insurance Bill becomes law

Today the Insurance Bill received Royal Assent, implementing reforms recommended by the Law Commissions of England and Wales and of Scotland to modernise and simplify insurance contract law across the UK. The Insurance Act 2015 will give effect to reforms recommended by the Law Commissions in their 2014 report Insurance Contract Law: Business Disclosure, Warranties, … Read more >

Insurance Bill receives Royal Assent

The Insurance Act 2015, which received Royal Assent on 12 February 2015, implements our recommended reforms on disclosure in business insurance, insurance warranties, and insurers’ remedies for fraudulent claims. The Act includes all of our recommendations apart from the clause relating to late payment, which was not considered suitable for the special procedure for uncontroversial Law Commission … Read more >

Recommendations to allow electronic documents would revolutionise trade

The Law Commission has today published its recommendations and draft legislation to allow for the legal recognition of electronic versions of trade documents such as bills of lading and bills of exchange. If implemented, the reforms could revolutionise global trade and bring the processes into the 21st century. Parties would be able to conduct trade … Read more >

Legal reforms to allow safe introduction of automated vehicles announced

The Law Commission of England and Wales and the Scottish Law Commission (the Law Commissions) have today (26 January 2022) published their joint report, making recommendations for the safe and responsible introduction of self-driving vehicles. The report recommends introducing a new Automated Vehicles Act, to regulate vehicles that can drive themselves. It recommends drawing a … Read more >