The Insurance Act comes into force on 12 August 2016 and will apply to all commercial insurances arranged or amended after this date.
One of the key aims of the Act is to ensure better exchange of information between insurers, brokers and customers, which should make it simpler and easier for businesses to get claims paid.
The Act introduces a “duty of fair presentation” which clarifies what an insured must disclose to an insurer and what an insurer ought to know about its insured.
The central requirement of Fair Presentation is still to share all material facts, accurately and in good faith. The fair presentation of risk clause requires you to provide information which includes:
If a policyholder deliberately or recklessly fails to make a fair presentation of the risk Insurers may:
If the failure to make a fair presentation is NOT deliberate or reckless Insurers may do one or more of the following, depending on what action they would have taken had they known all the material facts: