The Insurance Act 2015 (the "Act")
has come into force on 12 August 2016, marking the most significant
reform of the UK insurance law. This Act applies to all insurance
policies entered into on or after 12 August 2016, including
renewals, and to variations to existing policies made on or after
that date.
The past century has witnessed apparent injustice created by
some rigorous rules in the outdated insurance law, and its
incompatibility with the modern commercial practice. This article
summarizes the major changes to the UK insurance law regime brought
about by the Act that readers may find useful.
1. Duty of Fair Presentation
The Act replaces the duty of "utmost good faith"
("Uberrima fides") by the duty of "fair
presentation" of the insured. This requires the insured
to (i) disclose "every material circumstance" which the
insured knows or ought to know, and (ii) provide the insurer with
"sufficient information" to put a prudent insurer on
notice that it
