The Law Commission is planning to review insurance contract law concerning non-disclosure to improve protection for consumers.
Under current legal rules, insurance companies are technically within their rights to refuse to either pay a claim or return the premiums paid if the client fails to disclose “all material facts” at the outset of applying for almost any type of insurance policy and are later found to have not disclosed that information, even if the insurer has not asked relevant questions. The legal onus under legislation set down in 1957 is therefore very much on consumers to ensure they have disclosed all relevant information which might affect the status of their policy. But, over time, insurance c...
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