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Insurance law

Commissioner
Professor Hector MacQueen

Team members
Gillian Swanson, Project Manager
Thomas Watret, Legal Assistant

We are assisting the Law Commission for England and Wales with this project.

Latest news

In summer 2014, we aim to publish a second report on insurance contract law.  The topics covered will include damages for late payment, insurers’ remedies for fraud, the business insured’s duty of disclosure, the law of warranties, good faith and contracting out.

We would like to thank all those who took part in the recent limited consultations on draft clauses covering the following topics: fair presentation (disclosure and representations) in business insurance; damages for late payment of claims; insurers' remedies for fraudulent claims; good faith; warranties; insurers' remedies for fraudulent claims by members of group insurance schemes; and contracting out.  The draft clauses and accompanying notes are available below for information.

In the longer term, the aim is to publish a third and final report before the end of 2014.  It will set out the views of consultees on remaining issues such as policies and premiums in marine insurance.

Consumer Insurance

The Consumer Insurance (Disclosure and Representations) Act 2012 came into force on 6 April 2013.  It derives from the recommendations in our joint Report on Consumer Insurance Law: Pre-Contract Disclosure and Misrepresentation (Scot Law Com No 219) further details of which can be found on the completed project page. The Scottish Government gave their initial response to the Report in March 2010 and gave a further response following the successful passage of the Bill through the UK Parliament.

Background information

The project began in January 2006. The joint team 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, a paper setting out the scope of the project was published. The first joint consultation paper, published in 2007, covered pre-contract issues in both consumer and business insurance but the emerging scale of the project led the Commissions to introduce a phased programme of work, dealing with pre-contract consumer and business issues separately.

Our first report on Consumer Insurance Law was laid before Parliament in December 2009 and the Consumer Insurance (Disclosure and Representations) Bill was introduced in the House of Lords under the Special Bills Procedure in May 2011. The Bill, now the Consumer Insurance (Disclosure and Representations) Act 2012, received Royal Assent on 8 March 2012 and, as stated above, came into force on 6 April 2013.

The Law Commissions' second joint consultation paper (2011) covered post contractual issues: damages for late payment, fraudulent claims, insurable interest and policies and premiums in marine insurance. Our third joint consultation paper (2012) covered disclosure in business insurance and warranties. All of these papers, and other papers published in relation to the project, can be accessed by means of the links below.

Summary table of papers published so far:

January 2006 News Release on the Scoping Paper and the Scoping Paper
August 2006 Analysis of Responses and Decisions on Scope
September 2006 Issues Paper 1 - Misrepresentation and Non-Disclosure
November 2006 Issues Paper 2 - Warranties
March 2007 Issues Paper 3 - Intermediaries and Pre-Contract Information
July 2007 Joint Consultation Paper on Insurance Contract Law: Misrepresentation, Non-Disclosure and Breach of Warranty by the Insured (SLC DP134; LC CP 182); Key Proposals with Examples; News Release and Summary of the paper
January 2008 Issues Paper 4 - Insurable Interest and Summary of the paper
May 2008 Summary of responses on consumer insurance contract law
October 2008 Summary of responses on business insurance contract law
March 2009 Insurance intermediaries and pre-contractual information: a policy statement
April 2009 Issues Paper 5 - Micro-businesses
November 2009 Summary of responses to Issues Paper 5: Micro-businesses
December 2009 Joint Report on Consumer Insurance Law: Pre-Contract Disclosure and Misrepresentation
March 2010 Issues Paper 6 - Damages for Late Payment and the Insurer’s Duty of Good Faith
July 2010 Issues Paper 7 - The Insured's Post-Contract Duty of Good Faith
July 2010 Issues Paper 8 - The Broker's Liability for Premiums: Should Section 53 be Reformed?
October 2010 Issues Paper 9 - The Requirement for a Formal Marine Policy:  Should Section 22 Be Repealed?
November 2010 Summary of responses to Issues Paper 6: Damages for Late Payment and the Insurer’s Duty of Good Faith
December 2010 Summary of responses to Issues Paper 7:  The Insured’s Post-Contractual Duty of Good Faith
April 2011 Summary of responses to Issues Paper 8: The Broker's Liability for Premiums: Should Section 53 be Reformed?
April 2011 Summary of responses to Issues Paper 9: The Requirement for a Formal Marine Policy: Should Section 22 be Repealed?
December 2011 Joint Consultation Paper on Post Contract Duties and other Issues (SLC DP152; LC CP201); summary, impact assessment and news release; separate news release on late payment of claims.
June 2012 Joint Consultation Paper on the Business Insured’s Duty of Disclosure
and the Law of Warranties
(SLC DP155; LC CP204 ); Summary; News
Release
; Impact Assessment; Memorandum prepared for the Law
Commissions by David W Kenna.
December 2012 Summary of responses to Joint Consultation Paper on Post Contract Duties and other Issues - Damages for Late Payment
December 2012 Summary of responses to Joint Consultation Paper on Post Contract Duties and other Issues - Insurers Remedies for Fraudulent Claims
February 2013 Summary of responses to Joint Consultation Paper on Post Contract Duties and other Issues - Insurable Interest
February 2013 Summary of responses to Joint Consultation Paper on Post Contract Duties and other Issues - Policies and Premiums in Marine Insurance
March 2013  Summary of responses to Joint Consultation Paper on The Business Insured's Duty of Disclosure and the Law of Warranties - Disclosure
March 2013  Summary of responses to Joint Consultation Paper on The Business Insured's Duty of Disclosure and the Law of Warranties - Warranties
January 2014 Insurance Contract Bill: first available clauses
January 2014 Insurance Contract Bill: accompanying notes to first available draft clauses
March 2014 Insurance Contract Bill: draft clauses (warranties)
March 2014 Insurance Contract Bill: draft clauses (remedies for fraudulent claims)
March 2014 Insurance Contract Bill: draft clauses (contracting out)
March 2014 Insurance Contract Bill: accompanying notes on draft clauses on warranties etc

 

Contact

If you require any further information on the Insurance Contract Law project, or if there are matters you wish to raise, please email: gillian.swanson@scotlawcom.gsi.gov.uk.

If you would like to be kept informed of future publications and events we should be happy to add you to our email mailing list on request.