Five-year non-contestability on negligent claims proposed

In its consultation paper released today, the Law Commission says “insurers may not refuse claims on the basis of negligent statements after a set period”. It proposes the set period be five years, unlike the two years in many US states and three for Australia and New Zealand. The paper says: “Insurers would still be able to avoid for deliberate or reckless mistakes, but not for purely negligent ones. “The costs would need to be considered carefully, but we have been told that they are unlikely to be excessive.” The commission categorises three different type of misrepresentations –...