The Insurance Act 2015, which applies to all classes of non-consumer insurance and reinsurance and in part to consumer insurances, comes into effect on 12 August 2016. Bringing into force the Third Parties (Rights against Insurers) Act, with minor corrections, it represents a significant change to the legal framework of insurance contracts.
In this article, Nigel Cooper, Public Sector Practice Leader at Aon Risk Solutions, outlines the changes and explains how organisations can prepare for it.
• New duty of fair presentation for insureds.
• Warranties to be treated as suspensive conditions.
• New proportionate remedies available to insurers.
• Abolishment of basis of contract clauses.
• Insurer remedies for fraudulent claims.
• Next steps for organisations.