The Consumer Insurance (Disclosure and Representations) Act 2012 came into force on 6 April 2013 and applies to all consumer insurance contracts entered into on or after that date.
Previously when purchasing personal insurance, the consumer had a legal duty to disclose and not misrepresent any material fact that a prudent insurer would consider relevant. If a consumer breached this duty, the insurer could then avoid paying out the claim, regardless of whether the non-disclosure or misrepresentation was an innocent one. The Act now places the duty to gather information on the insurer instead, requiring the insurer to request from the consumer any material information needed to assess the risk. The consumer’s new legal duty is to take reasonable care not to make a misrepresentation to the insurer.
Read our full analysis of the Consumer Insurance Act 2012