Proposed Insurance Law Reforms: Warranties

The Law Commission and Scottish Law Commission have made proposals for the reform of insurance contract law. For an overview of the Commissions’ joint consultation paper published on 17th July 2007 click here.

If adopted, the proposals will see sweeping changes to the law on warranties in insurance contracts.

In November 2006, the Commissions concluded that the law in relation to warranties was unfair, did not reflect the expectations of insureds, and the consequences for breach draconian (Law Commissions’ Issue Paper 2: November 2006 - for more detail on the Commissions’ Issues Paper on warranties click here). Last week, the Commissions published a joint consultation paper setting out its provisional proposals for the reform of insurance contract law. In relation to warranties, the Commissions have stated that: