Joint LMA/IUA guidance to the Enterprise Act 2016 and late payment damages
The LMA and IUA have published their revised Insurance Act guidance today. The existing guides have been updated to include guidance relating to the Enterprise Act 2016 and damages for late payment of claims and to reflect the decision of the UK Supreme Court in the Versloot Dredging BV -v- HDI Gerling case relating to fraudulent claims.
Updates have been made to both the main Insurance Act 2015 guide and the quick reference guide. The new guides can be found here:
The essential changes to the first version of the main guide published in June 2015 are as follows:
- fraudulent claims: revised paragraphs 83 to 86
- late payment damages: new paragraphs 96 to 152.
There are other minor revisions to the main guide to reflect the coming into force of the Insurance Act 2015 some two months ago on 12 August 2016. The relevant provisions of the Enterprise Act 2016, which amend the Insurance Act, come into force on 4 May 2017 (see the guidance for details).
The updated quick reference guide includes a new page on late payment of claims. This is a summary of the statutory implied term that claims will be paid in a reasonable time and points to consider for underwriters and claims staff.
The guides have been written by Harry Wright, barrister at 7 King’s Bench Walk, in association with Clyde & Co, Cooley LLP and Ince & Co. We would like to thank them for their support in keeping the guides up-to-date; and we would also like to thank our members who reviewed and commented on this new material during the course of preparation.
The main guide contains links to additional material including:
- Law Commission Paper No 353, Insurance Contract Law: Business Disclosure; Warranties; Insurers’ Remedies for Fraudulent Claims; and Late Payment, July 2014.
Please email Kees van der Klugt for further information.
Kees van der Klugt
Director of Legal & Compliance
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