BIBA and CII among supporters of Law Commission changes

Laurence Baxter, head of policy and research at the Chartered Insurance Institute and Peter Staddon, head of technical services at the British Insurance Brokers’ Association are among leading figures demanding a change to insurance law.

In a letter to the FT senior figures in consumer groups and the industry call on the government to implement the Law Commission’s that consumers should not have to detail all relevant facts to an insurers even if not asked the direct question.

Law must change

“Insurance law needs change,” the letter begins. “The present law was developed to govern face-to-face commercial insurance deals in the coffee houses of Georgian London.

It requires consumers to volunteer any facts an insurer would regard as relevant – an unreasonable obligation in a modern mass-market internet world.

“If a consumer fails to make full disclosure the insurer may later be entitled to cancel the policy from outset and reject any claim – even if the consumer acted honestly and reasonably and there is no connection between the fact concerned and the loss.

Best practice

“Commendably many insurers do not rely on their legal rights. Instead they follow best practice set out in ombudsman’s guidance.

“We believe the law should be brought into line with best practice, giving consumers the certainty of legally enforceable rights, and benefiting insurers by increasing confidence in their products and professionalism.”

Other signatories include:

  • Lola Bello, senior policy advocate, Consumer Focus
  • Professor John Birds, University of Manchester
  • Beatrice Brooke, policy manager, British Heart Foundation
  • Peter Hinchliffe, former lead ombudsman for insurance
  • Mike Hobday, head of campaigns, policy and public pffairs, Macmillan Cancer Support
  • Martin Lewis, MoneySavingExpert.com
  • Professor Robert Merkin, deputy president, British Insurance Law Association
  • Helen McCallum, director of policy, advocacy and communications, Which?
  • Michelle Mitchell, charity director, Age UK
  • David Sanders, lead officer for civil law and former chairman, Trading Standards Institute
  • Christopher Stacey, Unlock, the National Association of Reformed Offenders
  • Peter J Tyldesley, senior lecturer, University of Bedfordshire
  • Laura Weir, head of policy and campaigns, MS Society

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