No duty of policyholder to declare information not asked for
The Law Commission wants to end a 103-year-old insurance law that campaigners say has led to thousands of claims being unfairly rejected each year, the BBC reports.
Consumers have to tell the insurer things they have been asked about, such as known medical conditions, but also anything else that could later turn out to be important.
The Law Commission said the rules put too much pressure on the consumer. The Financial Ombudsman Service said it received about 1,000 complaints on this issue a year.
The Association of British Insurers (ABI) is supporting a draft bill for England, Wales and Scotland that is due to be presented to Parliament by the Law Commission this week.
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