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01 October 2009 / Peter J Tyldesley
Issue: 7387 / Categories: Features , Commercial
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Archaic, unclear & unfair

Part 2: Peter J Tyldesley considers the proposals & prospects for consumer insurance law reform

In December 2009 the English and Scottish Law Commissions will publish a report recommending the reform of consumer insurance law.

The recommendations will be restricted to the pre-contractual provision of information by the consumer—that is non-disclosure or misrepresentation by the consumer and basis of the contract clauses. Appended to the report will be draft legislation, the Consumer Insurance (Disclosure andRepresentations) Bill.

Current law

Part 1 of this article considered the rules on non‑disclosure (see NLJ, 3 July 2009, p 961). Some of the criticisms of those rules apply equally to misrepresentation.

 If an insurer is induced to offer insurance cover by the misrepresentation of a material fact by a consumer it may, on becoming aware of the true position, avoid the policy and refuse to pay any claims.

As with non-disclosure, it is irrelevant whether the consumer acted fraudulently, negligently or entirely innocently. Nor does the insurer need to show a link between the misrepresentation and any

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MOVERS & SHAKERS

Signature Litigation—Catherine Naylor

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Morgan Lewis—Paul Feldberg

Morgan Lewis—Paul Feldberg

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NEWS
Cheshire West, which established an ‘acid test’ for deprivation of liberty safeguards, has been overturned by the Supreme Court
The Chancery Division and other segments of the High Court are to be replaced by a new Business and Property Division (BPD), in a major civil justice shakeup
Law firms that hold client money will need to file annual accountants’ reports and make a declaration, the Solicitors Regulation Authority (SRA) confirmed this week
Two district judges and a tribunal judge have been sanctioned for delays in delivering judgments and orders
Private equity (PE) investment into UK law firms halved to £250m last year, but deal volume rose, according to research by Acquira Professional Services’ Momentum private equity market tracker
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