News & Insights

From 4^th May 2017, the rights of policyholders to receive payment of their claims within a reasonable time have been strengthened. The Enterprise Act 2016 applies to every insurance policy placed or renewed from that date.

The Act imposes an implied term on insurance contracts that the insurer must pay any sums due within a reasonable time and breach of that may give rise to a claim for damages.

The Act defines what is a “reasonable time” which includes time to investigate and assess the claim and will depend on the relevant circumstances.

The Act, however, allows insurers dealing with a non-consumer policy to contract out of this implied term provided that it meets certain transparency requirements and it is clearly brought to the customer’s attention.  It will not apply however if the insurer deliberately or recklessly delays claims.

A policyholder who wishes to make a claim for late payment must lodge their case with the court within one year of the insurance company paying all other sums that are due in respect of the insurance claim.

For help in bringing an insurance claim contact Rob Kelly on 01202 755217 or r.kelly@laceyssolicitors.co.uk or Brendan Herbert on 01202 755201 or b.herbert@laceyssolicitors.co.uk.