When did the Insurance Act come into force?
The Insurance Act 2015 came into force on the 12th of August 2016 and changes the way the law deals with the duty of disclosure for commercial insurance contracts. The purpose of the Act is to update the current law to reflect the way in which the insurance market has evolved in modern times with the aim being to achieve a fair and balanced regime between insurers and insureds.
What you need to do?
Under the Act, insurance contracts will still be based on good faith and you will have a duty to make a fair presentation of the risk to insurers which will include disclosure of:
- Every material circumstance which as an insured you are expected to know or ought to know about the risk for which you are seeking insurance; or
- Sufficient information to put a prudent insurer on notice that it needs to make further enquiries to reveal those material circumstances.