Consumer Insurance (Disclosure and Representations) Bill
(Limited Text - Ministerial Extracts only)
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The Financial Secretary to the Treasury (Mr Mark Hoban)
I am pleased to announce that having considered the response to the Treasury’s targeted consultation on the Consumer Insurance (Disclosure and Representations) Bill, the Government have decided to take forward the proposed reforms, when parliamentary time permits.
These reforms are based on the recommendations made by the Law Commission and the Scottish Law Commission in their 2009 report “Consumer Insurance Law: Pre-Contract Disclosure and Misrepresentation” (Law Com 319/Scot Law Com 219).
The Bill will replace the requirement for consumers to volunteer information about everything which a “prudent insurer” would consider relevant with the requirement that insurers ask particular questions to obtain specific information about the customer. The current law and regulations on information disclosure are complex, and this Bill will provide protection for consumers and reduce costs for industry.
The Bill is the result of lengthy consultation and has broad-based support from industry and consumer groups. The Bill will be subject to minor modifications to meet concerns raised during the consultation.
A summary of the responses to the consultation, and the Government’s response, has been placed in the Libraries of both Houses.