The new Insurance Act will come into force on the 12th August 2016. This Act is the first piece of legislation governing commercial insurance since the Marine Insurance Act 1906.
The objective of the Act is to modernise with a focus on transparency and certainty over the rules that govern contracts between commercial policy holder and insurers.
The Act covers any policy taken out on or after the 12th August 2016 or where there is a change to a policy taken out prior to this date, then the provisions of the Act will be applicable.
Who is impacted by these changes?
The Act will cover all non-consumer policies. A consumer is defined as any individual who is buying insurance wholly or mainly for purposes unrelated to their trade business or profession. A non-consumer is any other policy holder that does not fall within this definition.
In summary the following are the main changes:
The objectives of the Act are to lead to greater transparency and lead to a reduction in the number of legal disputes.
Please follow the link below for a more detailed explanation of the Act and its implications for you as a policy holder. If you would like to discuss this further in any way please do not hesitate to contact us.
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