Insurers will have to have asked before turning down claims
The Law Commission, which covers England and Wales, and the Scottish Law Commission will today publish plans to scrap and insurance law passed in 1906 for shipping insurers, the FT reports.
The draft bill recommends insurers be required to ask questions about the things they want to know. It also suggests replacing the consumer's duty of disclosure with a duty to take reasonable care to answer questions fully and accurately.
"Our reforms would improve consumer protection, increase consumer confidence and enhance the reputation of the insurance industry," said David Hertzell, a law commissioner with the Law Commission.
The proposals are not expected to be considered by parliament until after next year's general election.
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