August 2016 – Ashleigh Mackay and Associates
Changes to the Insurance Act
August 30, 2016

The Insurance Act is a piece of legislation designed to modernise Britain’s insurance industry. The current regulations which govern the contracts between businesses and insurers are over 100 years old. The Insurance Act received Royal Assent on 12th February 2015 and will come in to force on 12th August 2016. The areas of legislation which are affected by the Act are as follows: • disclosure and misrepresentation • proportionate remedies • warranties • fraudulent claims. To read the Insurance Act 2015 in full go to What the reforms mean for businesses The aim of the Act is to remove rules which no longer reflect good commercial practice and balance the interests of the insured and insurer to put both parties in a neutral position. The Government estimates businesses will benefit by about £100 million over the next ten years through lower litigation and transaction costs. What has changed 1. Disclosure and misrepresentation in business insurance contracts When obtaining insurance…

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