Insurance Bill [HL]

Page 3, line 16, leave out from “(whether” to “the” in line 17

Page 3, line 18, at end insert—

“( )     In subsection (6) “information” includes information held within the
insured’s organisation or by any other person (such as the insured’s agent
or a person for whom cover is provided by the contract of insurance).”

Insert the following new Clause—

“Terms not relevant to the actual loss

(1)     This section applies to a term (express or implied) of a contract of
insurance, other than a term defining the risk as a whole, if compliance
with it would tend to reduce the risk of one or more of the following—

(a)   loss of a particular kind,

(b)   loss at a particular location,

(c)   loss at a particular time.

(2)     If a loss occurs, and the term has not been complied with, the insurer may
not rely on the non-compliance to exclude, limit or discharge its liability
under the contract for the loss if the insured satisfies subsection (3).

(3)     The insured satisfies this subsection if it shows that the non-compliance
with the term could not have increased the risk of the loss which actually
occurred in the circumstances in which it occurred.

(4)     This section may apply in addition to section 10.”

Page 6, line 32, leave out subsection (1) and insert—

“(1)     This section applies where—

(a)   a contract of insurance is entered into with an insurer by a person
(“A”),

(b)   the contract provides cover for one or more other persons who are
not parties to the contract (“the Cs”), whether or not it also provides
cover of any kind for A or another insured party, and

(c)   a fraudulent claim is made under the contract by or on behalf of one
of the Cs (“CF”).”

Page 6, line 42, leave out “consumer”

Page 7, line 7, after first “the” insert “first”

Page 7, line 10, at end insert—

“( )   the second reference to “the insured” in subsection (1)(b) is to A or
CF,”

Page 8, line 3, leave out paragraph (b)

Page 8, line 18, leave out subsection (3)

Insert the following new Clause—

“Contracting out: group insurance contracts

(1)     This section applies to a contract of insurance referred to in section 13(1)(a);
and in this section—

“A” and “the Cs” have the same meaning as in section 13,

“consumer C” means an individual who is one of the Cs, where the
cover provided by the contract for that individual would have been
a consumer insurance contract if entered into by that person rather
than by A, and

“non-consumer C” means any of the Cs who is not a consumer C.

(2)     A term of the contract of insurance, or any other contract, which puts a
consumer C in a worse position as respects any matter dealt with in section
13 than that individual would be in by virtue of that section is to that extent
of no effect.

(3)     A term of the contract of insurance, or any other contract, which puts a non-
consumer C in a worse position as respects any matter dealt with in section
13 than that person would be in by virtue of that section is to that extent of
no effect, unless the requirements of section 17 have been met in relation to
the term.

(4)     Section 17 applies in relation to such a term as it applies to a term
mentioned in section 16(2), with references to the insured being read as
references to A rather than the non-consumer C.

(5)     In this section references to a contract include a variation.

(6)     This section does not apply in relation to a contract for the settlement of a
claim arising under a contract of insurance to which this section applies.”