The Law Reform Commission published its report on Consumer Insurance Contracts in July 2015 following a comprehensive review of both EU and domestic legislation and industry codes of practice and concluded that there was a need for reform and a consolidation of the various existing provisions and standards.
The draft Consumer Insurance Contracts Bill which is proposed to give effect to these changes and reforms will result in a fundamental change to the long established principles of insurance law, e.g., abolition of utmost good faith, duty of disclosure, insurable interest and warranties and the introduction of proportionate remedies. The effect of such proposed changes will be that a greater emphasis will have to be put on ascertaining full and adequate information at proposal stage and the burden is shifting away from the consumer and onto the Insurer in ensuring that they seek all relevant information at the outset.
While it is not clear if any Government decision has been made to bring forward the draft bill, it would seem likely to come onto the Government agenda, particularly in light of the ongoing media coverage about insurance generally and the changes being effected in the UK under the UK Insurance Act 2016.
