Tension between the Association of British Insurers (ABI) and the Law Commission over non-disclosure rules is growing following a television programme which discussed declined claims.
Despite improved pay-out rates across most insurers, ITV1's 'You Think You're Insured?' aired recently and followed cases where insurers refused to meet claims due to a variety of non-disclosure issues. Speaking on the show, Law Commissioner David Hertzell said a Code of Practice laid out by the ABI in January to address non-disclosure concerns does not go far enough to protect consumers. He also repeated his declaration that radical legal reform is needed to tackle what he calls "out-of-date" legislation .
A report by the Commission on non-disclosure, due out in December, following a consultation with 105 insurers, trade bodies, including the ABI, intermediaries and consumers. On the findings, Hertzell told IFAonline: "Overwhelmingly the response was in favour of change because people feel current legislation is out of date."




