A proposed change to insurance laws would make them much fairer for consumers. The new law would put the onus on insurers to ask the right questions rather than requiring consumers to volunteer the right information when taking out an insurance policy.
The Consumer Insurance (Disclosure and Representations) Bill has had its first reading in the House of Lords. It is designed to change the current law which makes it the customer’s duty to disclose all relevant personal information when they apply for insurance. Instead, the insurer would now have to ask the right questions to obtain the specific information they need.
The current law hasn’t changed since the early years of the twentieth century and the Coalition Government believes it is too complex and confusing for consumers. It can frequently result in policyholders discovering when they make a claim that they are not covered as they have failed to provide their insurer with all the facts when the policy was purchased.
The new law is designed to “radically change the relationship between consumers and insurance providers.” While the onus will be on insurers to ask the right questions, the consumer will have to answer fully and accurately, and take ‘reasonable care’ not to provide any misleading answers.
Morgan Clark’s team of experienced loss assessors have helped many policyholders through difficult claims, achieving the very best settlement for them. To find out more about our services, read about some of their experiences.