Changes to the Insurance Act 2015 came into effect on the 12th August 2016 and I wager that you can’t wait to hear what it contains!
No? – well, let me tell you anyway because it will affect you. In actual fact the act makes some major improvements for both clients and brokers which should make all of our lives easier and in my mind brings us back to what insurance should be about – compensating clients who have suffered genuine losses.
- No more insurers avoiding claims because there is a minimum security condition on the policy and a window hadn’t been locked when the premises flooded!
- No more avoiding a claim because a material fact was carelessly or innocently not disclosed!
- No more cancelling a policy because a warranty is not being complied with!
HOWEVER, there is a trade off, of course!
Policyholders do need to make more effort to ensure that their insurer knows and understands their business which means checking with other people in the organisation to ensure they aren’t aware of something that you aren’t! We need to work together to gather all relevant information and pass this onto insurers to produce a “fair presentation of risk” and if we achieve that then we are all sorted!
For further clarification on anything related to the Insurance Act 2015, please feel free to contact me on 01302 341 344.