Section 9 of the Deregulation Act 2015 will make it easier for insurers to cancel policies – but they must remain fair to customers. Matthew Burfield, partner in the motor group at BLM discusses the topic in an article published in Post Magazine.
Last week saw one of the most welcome and overdue pieces of legislation for motor insurers come into force – section 9 of the Deregulation Act 2015.
The Act affects all motor policies, whether personal or business, and is set to make it easier for insurers to cancel an insurance contract. It does not affect or deal with an insurer’s right to apply to the courts to declare an insurance policy void for non-disclosure or misrepresentation.
The enactment of the Deregulation Act amends section 147 of the Road Traffic Act 1988 with consequential amendments to sections 148, 151, 152, 153 and 161. The effect of the amendments to section 152 is to relieve policyholders of the obligation to surrender certificates and to relieve insurers of the burden of taking proceedings when the policyholder fails to do so. The offence of failure to surrender (s. 147(5)) is extinguished, which is also good news for policyholders.
Click here to read the full article.
To sign up for immediate alerts or to update your current preferences, please click here