Law Commission changes will take onus for non-disclosure away from clients
By Johanna Gornitzki
Proposals set out by the Law Commission will massively boost consumer confidence, argued Nick Kirwan, protection market director at Scottish Widows.
Addressing delegates at the COVER Protection Forum, last month, Kirwan said the Law Commission report, published late September this year, would shift the responsibility for non-disclosure from the customer to the provider.
The new proposals suggest that a 'three-year review period' should be introduced, after which insurers would not be able to decline a claim due to non-disclosure, unless it is fraudulent.
It is also proposed that providers who give the impression they are going to write to a customer's GP for more information, should no longer be able to rely on what the customer says if they fail to do so.
"This will put the onus back on the insurer, instead of the adviser or the client," Kirwan revealed.
He added that he thought the proposals would have a major impact, saying: "Most people think they will improve consumer confidence, which is well needed."
He did not think the proposals would affect premiums but believed policies will stay on the books for longer, making rebroking quite difficult.
The Law Commission is yet to announce when the proposals are likely to become law and whether they will apply retrospectively.
However, Kirwan was adamant they will have to apply to all policies - both new ones and ones already put into place - because otherwise it will go against treating customers fairly.
"This is a significant change, which will see providers having to raise their bars a lot," he added.
n For more information on the new Law Commission proposals please turn to page 24 for a feature looking more closely at these changes.
