Mark Hoban has announced moves that will make it harder for insurers to turn down claims because customers have not given their provider inaccurate or misleading information.
The City minister told the House of Commons yesterday that the government will make Parliamentary time available for the Consumer Insurance (Disclosure and Representations) Bill.
The bill, which is based on recommendations in a 2009 Law Commission report, replaces the requirement for consumers to volunteer information about everything which a “prudent insurer” would consider relevant.
Instead the onus will be on insurers to ask particular questions to obtain specific information about the customer.
Under the changes, insurers will no longer be able to avoid paying claims merely because of an inaccurate or misleading statement by consumers.
In a written statement to the Commons, Hoban said: “The current law and regulations on information disclosure are complex, and this Bill will provide protection for consumers and reduce costs for industry.”
The statement says the bill, which is the result of lengthy consultation and has “broad-based support from industry and consumer groups”, will be tweaked to address concerns raised during the consultation.
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