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ARTICLE · 29 MARCH 2017

UK Property & Liability Legal Update - Issue 1, 2017

Clyde & Co
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Ben Crook and Neil Beresford are holding a Breakfast Briefing on Wednesday 26 April 2017 to highlight for insurers the issues arising and practical steps needed in advance of the introduction of a new...

United KingdomInsurance
Clyde & Co LLP
Clyde & Co LLP
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Damages for late payment:

Section 13A of the Insurance Act 2015

Ben Crook and Neil Beresford are holding a Breakfast Briefing on Wednesday 26 April 2017 to highlight for insurers the issues arising and practical steps needed in advance of the introduction of a new right for insured's to claim damages from insurers for late payment from 7 May 2017.

Why is this change significant?

From 7 May 2017, insurers and reinsurers who do not investigate and pay valid claims "in a reasonable time" may be obliged to pay damages to their (re)insured. That is damages, in addition to the insured's valid claim and interest. An award of damages in addition to the claim and interest could mean insurers are obliged to pay more than policy limits. There will also be reputational risk for the insurer of an adverse finding. This is a significant change to insurance law and we expect property and liability insurers in particular will be taking note.

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