News & views

Thursday, August 11, 2016

In this our fourth bulletin on the Insurance Act 2015, we take a look at the changes that NIG has made to policy documentation to ensure compliance and readiness for 12th August 2016. These changes are necessary because we’ve made a firm commitment to contracting into (rather than contracting out of) all of the provisions of the Act.

NIG has embraced the Insurance Act 2015. We’re real advocates of the changes and believe that they will ensure that customer needs are more effectively responded to and that better customer outcomes are delivered, now and in the future.

All of our documents have been updated to comply with the Act and our revised documentation will be in place from 12th August 2016

NIG’s approach to Policy Wording:

• For New Business policies incepted from the 12th August, a new Insurance Act compliant Policy Wording will be issued

• For Existing Business policies renewing on and after the 12th August:

- For eTraded and Mini Fleet policies a new policy wording will be issued
- An endorsement suite will be applied to all other policies including policies on products that are closed for new business

What Insurance Act 2015 changes can our customers and brokers expect to see in our policy wordings?

• Removal of the basis of contract clause
• General Condition for misrepresentation has been replaced by Fair Presentation of Risk
• Claims Condition for Fraudulent Claims has been amended to comply with the requirements of the Act
• General Condition for Change of Risk or Interest has been amended so that the remedy for breach is now treated as a Condition Precedent rather than voidance

We’ve also decided to remove all Warranties from our policies and replace them with Conditions Precedent, therefore going beyond the requirements of the Act

In addition, we’ve reviewed all other documentation including proposal forms, statement of facts, quote letters etc. to ensure that they’re also Insurance Act compliant.

We believe that the implementation of these changes, above and beyond the minimum standard of what was required by the Act, is yet another demonstration of our ongoing commitment to both customers and brokers.