BIBA gives evidence on Insurance Bill in House of Lords
9th December 2014
The British Insurance Brokers’ Association (BIBA) has given evidence to the House of Lords Special Public Bill Committee on the Insurance Bill.
Graeme Trudgill, BIBA’s Executive Director, gave evidence today supporting the Bill and calling for the re-introduction of clause 11 because brokers believe that the insurer should pay the claim when the breach of a specific risk mitigation term is
totally irrelevant to the loss that has taken place.
In addition, Graham Terrell Deputy Chairman of the BIBA Liability and Accident Committee and Technical Specialist at JLT gave evidence on behalf of BIBA members.
Graeme Trudgill’s opening presentation can be viewed below.
Notes to editors
- A summary of Graeme Trudgill’s opening statement can viewed below
Thank you my Lord Chairman for inviting BIBA to provide oral evidence. BIBA strongly
Support the Bill and we feel there are four key areas which require modernising for the benefit of policyholders
First – the Basis of Contract Clause (Clause 9 Warranties and representations)
We are strongly in favour of the abolition of such clauses.
Secondly – the Automatic Avoidance for Material Non-Disclosure (Clause 8 Remedies for breach)
We are strongly in favour of having a new regime of more proportionate remedies for failure to make a fair presentation of the risk, as the existing sole remedy of avoidance is too draconian and inflexible.
Thirdly – Consequence of Breach of Warranty. (Clause 10 Breach of Warranty)
We are strongly in favour of the new remedy for breach of warranty being suspension of cover for the duration of the breach rather than automatic discharge of insurer’s liability as currently provided under the Marine Insurance Act.
Fourth – We did not include in our written submission to the lords revised clause 11 – Terms not relevant to the actual loss, but I can advise that BIBA members are strongly in favour of this redrafted clause.
If there were one change we would ask for in this Bill it would be to include revised clause 11. as Brokers believe that the insurer should pay the claim when the breach of a specific risk mitigation term is totally irrelevant to the loss that has taken place.
Finally, we would like to congratulate David Hertzell on bringing forward this Bill and support its implementation if full; we do not wish to impede its passage in any way.
BIBA believes it is vital to keep the UK at the forefront of the global Insurance market and achieves reasonable balance between the safeguards for both Insurers and Insureds and has our support.
Click here to download photo of BIBA’s Executive Director Graeme Trudgill and Graham Terrell Deputy Chairman of the BIBA Liability and Accident Committee and Technical Specialist at JLT at the House of Lords.
For further information please contact:
BIBA press office:
Leighann Forsyth, Head of Communications
020 7397 0223
- About British Insurance Brokers' Association
The British Insurance Brokers' Association (BIBA) is the UK's leading general insurance intermediary organisation representing the interests of insurance brokers, intermediaries and their customers.
BIBA membership includes just under 2,000 regulated firms having merged with the Institute of Insurance Brokers (IIB) in November 2011.
General insurance brokers contribute 1% of GDP to the UK economy and BIBA brokers employ more than 100,000 staff.
53% of all general insurance is sold by an insurance broker and they arrange 81% of all commercial insurance business.
Insurance brokers put the client’s interests first, providing advice, access to suitable insurance protection and risk management.
BIBA helps more than 400,000 people a year to access insurance protection through it’s Find a Broker service, both online and via the telephone.
BIBA is the voice of the industry advising members, the regulators, consumer bodies and other stakeholders on key insurance issues. BIBA provides unique schemes and facilities, technical advice, guidance on regulation and business support and is helping to raise, and maintain, industry standards.