The Insurance Act 2015 – It’s a Big Deal
Coming into play on the 12th August 2016, the 2015 Insurance Act will provide one of the biggest overhauls in the insurance industry in the last century.
The act was designed to “re-engineer the foundations on which policies are built”. And will take large strides to ensure that the industry becomes a more customer focused one, rather than an insurer friendly atmosphere.
The new legislation is set to replace the old model introduced in 1906. Indeed, Steve White, British Insurance Brokers’ Association (BIBA) has reported that: “The industry has never experienced such a massive change in the legislation governing our practices.” And that “We would like to see brokers and insurers alike unite in the way in which the Act is adopted ideally by embracing our implementation guide to create a transparent and fair approach for all.”
So how will the new act affect you? Well, as the owner of a business you will be responsible for making sure that your insurance provider is aware of the risks that are associated with your business, as well as this it will also be a requirement for you to consult with anyone who may possibly benefit from the cover if they know of any information that could possibly influence any risk.
What does this mean? Well, in theory at least it should mean that there is a reduction in the amount of non-disclosure responses and will also increase the probability that you would receive a pay out if you were to make a large claim.
The act is also aiming to reduce insurers response times by putting more pressure on the insurers to act on a claim quickly. Luckily, this means that if you were to make a claim after August the response time of the insurers should be quicker than ever before.
Under the new Act that is being implemented you, the customer is in a position of power if there is laziness on behalf of your insurer. For example, if they delay on their payment for a claim you may also be able to claim damages for late payment.