Part 2: Peter J Tyldesley considers the proposals & prospects for consumer insurance law reform
In December 2009 the English and Scottish Law Commissions will publish a report recommending the reform of consumer insurance law.
The recommendations will be restricted to the pre-contractual provision of information by the consumer—that is non-disclosure or misrepresentation by the consumer and basis of the contract clauses. Appended to the report will be draft legislation, the Consumer Insurance (Disclosure andRepresentations) Bill.
Current law
Part 1 of this article considered the rules on non‑disclosure (see NLJ, 3 July 2009, p 961). Some of the criticisms of those rules apply equally to misrepresentation.
If an insurer is induced to offer insurance cover by the misrepresentation of a material fact by a consumer it may, on becoming aware of the true position, avoid the policy and refuse to pay any claims.
As with non-disclosure, it is irrelevant whether the consumer acted fraudulently, negligently or entirely innocently. Nor does the insurer need to show a link between the misrepresentation and any claim which has occurred.
Not content with these rights some
