The Insurance Act 2015 came into force today. In practical terms, the effect of the Act is to reduce the number of ‘technical’ defences that can be used by insurance companies to avoid paying out on claims.
Under the Act, where there is a breach of the policy conditions the success of a claim will depend on whether or not the breach increased the probability of a loss. A breach of an ‘irrelevant’ condition will not invalidate a claim.
A breach of the conditions of your insurance policy is always likely to lead to a battle with your insurers and is best avoided. Now that the Act is in force, policyholders will be more confident that technical breaches will be much less likely to lead to a denial of their claim.
Insurance claims are often contentious. We can advise you in the event of a dispute with your insurance company.