Insurance law up for review
by Gill Montia
Story link: Insurance law up for review
The Law Commission is dissatisfied with current insurance law, The Daily Telegraph has reported.
The independent body, which keeps the law under review and recommends reform where needed, is due to report on insurance law this autumn.
According to the newspaper, it will say that current insurance law is unsuited to mass-market consumer insurance policies because it is based on commercial insurance practices.
In addition, consumer bodies are lobbying the Government to include proposed changes in the Queen’s Speech that could re-orientate current insurance law towards to the Association of British Insurers’ voluntary code of practice and the best practice guidelines laid down by the Financial Ombudsman Services.
University of Manchester insurance law lecturer, Peter Tyldesley, told the Telegraph that many insurance companies already follow the best practice guidelines.
However, less reputable insurers will still rely upon the strict letter of the law to reject reasonable claims.