Biba wants to ensure brokers will not have extra responsibilities regarding disclosure requirements
Biba has sought clarification on the role of a broker under the proposed revisions to Business Insurance Contract Law in its response to the Law Commissions’ consultation.
Under the proposed changes, insurers will no longer be able to refuse to payout a claim for missing information at the point of application.
Instead, claims can be reduced by an amount proportional to the extra premium that would have been charged if all the information was provided.
Biba is seeking to ensure that no additional responsibilities fall upon the broker in regard to commercial customers’ disclosure requirements that could result in professional indemnity issues.
Biba head of technical services Steve Foulsham said: “We have been working closely with the Law Commission throughout the whole process of contract law reform and we are anxious to support the Bill to ensure that it makes its passage through the parliamentary process as quickly as possible.
“We are confident that that the clarification that we have sought will be resolved positively. We now await with interest, the next stage which will involve consultation on the clauses dealing with warranties and contracting out.”
Law Commissioner David Hertzell said: “I appreciate the time and effort Biba has made to all of the Law Commission consultations and I will be considering Biba’s comments with parliamentary counsel as the draft Bill is finalised.”