Civil Liability Bill [HL]

Commons amendments

[The page and line refer to Bill 240, the Bill as first printed for the Commons]

Clause 3

1

Page 4, line 17, at end insert—

 

“( )    

The Lord Chancellor must consult the Lord Chief Justice before making

 

regulations under this section.”

Clause 5

2

Page 5, line 27, after “injury” insert “or injuries”

Before Clause 11

3

Insert the following new Clause—

 

“Report on effect of Parts 1 and 2

 

(1)    

Regulations made by the Treasury may require an insurer to provide

 

information to the FCA about the effect of Parts 1 and 2 of this Act on

 

individuals who hold policies of insurance with the insurer.

 

(2)    

The regulations may provide that an insurer is required to provide

 

information only if it has issued third party personal injury policies of

 

insurance on or after 1 April 2020 to individuals domiciled in England and

 

Wales.

 

(3)    

The regulations may—

 

(a)    

specify the information or descriptions of information to be

 

provided;

 

(b)    

specify how information is to be provided;

 

(c)    

specify when information is to be provided;

 

(d)    

require that information or specified descriptions of information be

 

audited by a qualified auditor before being provided;

 

(e)    

make provision about the audit;

 

(f)    

require that details of the auditor be provided to the FCA.

 
 

 


 
 

2

 
 

(4)    

Regulations under subsection (3)(a) may in particular require an insurer to

 

provide information, by reference to each of the report years, about—

 

(a)    

the amount paid by the insurer during the report period under its

 

relevant third party personal injury policies of insurance in respect

 

of personal injuries sustained by third parties, where the amount of

 

damages for the injury is governed by the law of England and

 

Wales;

 

(b)    

the amount that the insurer might reasonably have been expected

 

to pay in respect of those injuries if this Act had not been passed;

 

(c)    

the mean of the amounts paid during the report period under those

 

policies in respect of those injuries;

 

(d)    

what might reasonably have been expected to be the mean of the

 

amounts paid in respect of those injuries if this Act had not been

 

passed;

 

(e)    

the amounts described in paragraphs (a) to (d), determined by

 

reference only to cases where—

 

(i)    

the amount paid by an insurer under a policy, or

 

(ii)    

the amount that an insurer might reasonably have been

 

expected to pay under a policy,

 

    

falls within one of the bands specified in the regulations;

 

(f)    

the amount charged by the insurer by way of premiums for relevant

 

third party personal injury policies of insurance where the cover

 

starts in the report period;

 

(g)    

the amount that the insurer might reasonably have been expected

 

to charge by way of premiums for those policies if this Act had not

 

been passed;

 

(h)    

the mean of the premiums charged for those policies;

 

(i)    

what might reasonably have been expected to be the mean of the

 

premiums charged for those policies if this Act had not been

 

passed;

 

(j)    

the amounts described in paragraphs (f) to (i), determined as if the

 

references to a premium charged for a relevant third party personal

 

injury policy of insurance were references to so much of the

 

premium as is charged in order to cover the risk of causing a third

 

party to sustain personal injury;

 

(k)    

if any reduction in the amounts referred to in paragraph (a) has

 

been used to confer benefits other than reduced premiums on

 

individuals, those benefits.

 

(5)    

The regulations may make provision about the methods to be used in

 

determining the amounts described in subsection (4)(b), (d), (g) and (i),

 

including provision about factors to be taken into account.

 

(6)    

The regulations may provide for exceptions, including but not limited to—

 

(a)    

exceptions relating to policies of insurance obtained wholly or

 

partly for purposes relating to a business, trade or profession;

 

(b)    

exceptions relating to policies of insurance of a specified

 

description,

 

(c)    

exceptions for cases where the value or number of policies of

 

insurance issued by an insurer is below a level specified by or

 

determined in accordance with the regulations, and

 

(d)    

exceptions relating to insurers who, during the report period, issue

 

policies of insurance only within a period that does not exceed a

 

specified duration.

 
 

 


 
 

3

 
 

(7)    

Before the end of a period of one year beginning with 1 April 2024, the

 

Treasury must prepare and lay before Parliament a report that—

 

(a)    

summarises the information provided about the effect of Parts 1

 

and 2 of this Act, and

 

(b)    

gives a view on whether and how individuals who are policy

 

holders have benefited from any reductions in costs for insurers.

 

(8)    

If insurers provide additional information to the FCA about the effect of

 

Parts 1 and 2 of this Act, the report may relate also to that information.

 

(9)    

The FCA must assist the Treasury in the preparation of the report.

 

(10)    

In the Financial Services and Markets Act 2000—

 

(a)    

in section 1A (functions of the Financial Conduct Authority), in

 

subsection (6), after paragraph (cza) insert—

 

“(czb)    

the Civil Liability Act 2018,”;

 

(b)    

in section 204A (meaning of “relevant requirement” and

 

“appropriate regulator”)—

 

(i)    

in subsection (2), after paragraph (a) insert—

 

“(aa)    

by regulations under section (Report on effect

 

of Parts 1 and 2) of the Civil Liability Act

 

2018,”;

 

(ii)    

in subsection (6), after paragraph (a) insert—

 

“(aa)    

by regulations under section (Report on effect

 

of Parts 1 and 2) of the Civil Liability Act

 

2018;”.

 

(11)    

A statutory instrument containing regulations under this section is subject

 

to affirmative resolution procedure.

 

(12)    

In this section—

 

“the FCA” means the Financial Conduct Authority;

 

“insurer” means an institution which is authorised under the Financial

 

Services and Markets Act 2000 to carry on the regulated activity

 

of—

 

(a)    

effecting or carrying out contracts of insurance as principal,

 

or

 

(b)    

managing the underwriting capacity of a Lloyd’s syndicate

 

as a managing agent at Lloyd’s;

 

“qualified auditor” means a person who is eligible for appointment as

 

a statutory auditor under Part 42 of the Companies Act 2006;

 

“relevant third party personal injury policy of insurance” means a

 

third party personal injury policy of insurance issued by an insurer

 

to an individual domiciled in England and Wales;

 

“report period” means the period of three years beginning with 1

 

April 2020;

 

“report year” means a year beginning with 1 April 2020, 2021 or 2022;

 

“third party personal injury policy of insurance” means a policy of

 

insurance issued by an insurer which provides cover against the

 

risk, or risks that include the risk, of causing a third party to sustain

 

personal injury.”

 
 

 


 
 

4

 

Clause 12

4

Page 15, line 30, leave out subsection (1) and insert—

 

“( )    

This Act extends to England and Wales only, subject to the following

 

subsections.”

5

Page 15, line 35, leave out “This Part extends” and insert “Sections (Report on effect

 

of Parts 1 and 2)(10) and 11 to 14 extend”

Clause 14

6

Page 16, line 6, leave out subsection (2)

 
 

 

 
 


25 October 2018