Damages for late payment enacted today
Published 4 May 2016
Enterprise Act 2016 receives Royal Assent
The Enterprise Act 2016 received Royal Assent today, 4 May 2016, finally making damages for late payment a reality. The provisions introduce into every contract of insurance an implied term requiring the insurer to pay sums due within a reasonable time. Failure to do so entitles the insured to remedies including damages.
This Act concludes a somewhat controversial journey that has seen the provisions removed from the draft Insurance Bill and later carve outs unsuccessfully sought for reinsurance and large risks. The key provisions will slot in as ss13A and 16A of the Insurance Act 2015 but will not however come into effect until one year from today.
For more information on practical implementation of the Enterprise Act 2016, click here.
Read the full report.