Consumer Insurance (Disclosure and Representations) Act 2012
| Act of Parliament | |
| Long title | An Act to make provision about disclosure and representations in connection with consumer insurance contracts. |
|---|---|
| Citation | 2012 c. 6 |
| Introduced by | Mark Hoban (Commons) Lord Sassoon (Lords) |
| Dates | |
| Royal assent | 8 March 2012 |
| History of passage through Parliament | |
| Text of the Consumer Insurance (Disclosure and Representations) Act 2012 as in force today (including any amendments) within the United Kingdom, from legislation.gov.uk. | |
The Consumer Insurance (Disclosure and Representations) Act 2012 (c. 6)[1] is a UK act of Parliament that makes important reforms to insurance law.
Overview
The act was a consequence of the Law Commission's millennium review of the law of insurance that started in 2006. The review examined insurance in general, and of marine insurance in particular.[2] The new legislation is a response to a consensus that the Marine Insurance Act 1906 is old-fashioned, it no longer represents current practice, and it undermines the continuing dominant position of English insurers in the global market.[3]
The act has since been complemented by the Insurance Act 2015; and both of these modern Acts have significantly amended the Marine Insurance Act 1906, particularly in the area of misrepresentation and disclosure.
Provisions
The Consumer Insurance (Disclosure and Representations) Act 2012 makes provisions as follows:
- Section 1 creates the concept of "consumer" and "non-consumer" insurance contracts.
- Section 2 covers Pre-contractual disclosures and representations to the insurer. The Act imposes a duty upon the insured to take reasonable care not to make a misrepresentation to the insurer.
- Section 3 declares that the Standard of Care is to be determined in the light of all the relevant circumstances.
- Sections 4 defines "qualifying misrepresentations: definitions and remedies".
- Sections 5 defines "qualifying misrepresentations: classification and presumptions".
- Section 6 covers warranties and representations
- Section 8 covers life insurance policies
- Schedule 1 makes provision for Insurers' remedies for qualifying misrepresentations.
- Schedule 2 makes provision for rules determining the status of agents
The act replaces the disclosure requirements of the Marine Insurance Act 1906.[4] The act moves the burden from the consumer having to "disclose information an underwriter may consider material" to insurance providers who are required to make sure their application forms ask all relevant questions.[5]
Commencement
The act was brought into force in April 2013.[6]
See also
References
- ^ The Consumer Insurance (Disclosure and Representations) Act 2012 (c. 6)
- ^ http://insurance.dwf.co.uk/news-updates/2015/02/the-insurance-act-2015-is-here…or-almost-here/
- ^ "Learning content hub - Chartered Insurance Institute (CII)".
- ^ "Insurance disclosure rules about to change". BBC News. 27 May 2011. Retrieved 28 January 2026.
- ^ Watt, Greg (25 April 2013). "Simon Jacobs: New insurance law should re-assure protection customers". Money Marketing. Retrieved 28 January 2026.
- ^ Addley, Esther (26 April 2013). "Victory for family denied cancer claim payout for father". Retrieved 28 January 2026.