Not many people know this, to quote a memorable Michael Caine line, but the 12th August doesn’t just mark the start of the red grouse shooting season, it is also the date when the new Insurance Act 2015 comes into effect.
For the insurance world it’s the biggest change since 1906 when the Marine Insurance Act was passed into law to regulate Marine insurance and from there, all insurance policies.
What will it mean for me?
For most people it will mean little unless it affects their premium but it is significant as it aims to re-balance the position between the buyers of insurance and the Insurers themselves, and brokers will be telling their clients what the changes mean to them.
The change affects commercial customers only and changes the way the Duty of Disclosure is dealt with because it was felt the current law needed to better reflect modern times.
Although Insurance contracts will still be based on good faith you have a duty to make a fair presentation of the risk to insurers. By this, we mean that all and any facts that might affect an insurer’s decision need to be disclosed.
Depending on the complexity of your business, it might mean obtaining material information from others within the company, such as senior managers, or anyone you outsource services to, such as an accountant.
You may need to spend longer discussing the details of your business with your insurer but it’s worth remembering that by using a broker, we can work together to ensure that the information you provide is clear, correct and as up to date as possible. And unlike the poor old grouse you won’t end up full of lead!
Follow this link to find out more – http://countrylifeinsurance.co.uk/the-new-insurance-act/
Expect to see the following phrases trending a lot over the next year… …although I still don’t think they’ll be trending on Twitter.
- To the best of your knowledge
- Utmost good faith.
- Fair presentation.
- Information you would be expected to know.