We have previously reported on the Law Commission and Scottish Law Commission’s (the Commissions) review of insurance contract law.
The Commissions have published a further Consultation Paper (the Paper) requesting responses on the following areas of reform:
- Damages for late payment.
- Insurers’ remedies for fraudulent claims.
- Insurable interest.
- Policies and premiums in marine insurance.
Of the proposed reforms, one of particular interest to the insurance industry is whether there should be a statutory duty to pay valid claims. At present under English law, an insured is not able to claim damages where he has suffered loss either as a result of an insurer failing to pay a valid insurance claim or because of a considerable delay in payment. This position is contrary to the normal position under English contract law and has been described as “increasingly anomalous and isolated”.
Responses to the Paper are requested by 20 March 2012. To view the Paper, please click here.