Insurance Act 2015
What this means for your business
- Enforced by
- FCA
- Applies to
- United Kingdom
- On this page
- 2 compliance obligations, 3 practical guides across 2 topics
What you must do
2 compliance obligations under this legislation.
Management duties 1
Disclose any disadvantageous term clearly before contract signing
If you sell insurance, you must make sure any term that could put the policyholder at a disadvantage is brought to their attention before the contract is signed or varied, and that the term is written in plain, unambiguous language. You also need to consider the type of customer and the transaction when deciding how to disclose it. If the policyholder already knows the term, they cannot later claim you failed to highlight it.
Payments and fees 1
Pay insurance claims promptly
When a policyholder lodges a claim, your insurance business must pay any amount that is due within a reasonable time, allowing a sensible period to investigate and assess the claim. You can withhold payment only if you have reasonable grounds to dispute the amount or the existence of a liability, and even then you must handle the claim fairly and promptly.
Practical guidance
Our guides explain how to comply with the requirements above.
Insurance Act 2015 compliance for businesses
Understanding your disclosure duties and rights when purchasing commercial insurance under the Insurance Act 2015.
Business interruption insurance
How business interruption insurance works, what it covers, and how to calculate the right level of cover. Includes guidance on …
Comparing business insurance policies
How to compare insurance quotes and policy documents so you choose cover that actually protects your business. Covers what to …
Sections and provisions
27 classified provisions from this legislation.
Definitions 8
- s.1 Insurance contracts: main definitions non-consumer insurance contract insured insurer
- s.2 Application and interpretation
- s.3 The duty of fair presentation
- s.4 Knowledge of insured
- s.6 Knowledge: general
- s.7 Supplementary
- s.8 Remedies for breach
- Schedule 2 Rights of third parties against insurers: relevant insured persons enactment
Exemptions 6
- Schedule 1 Insurers' remedies for qualifying breaches
- s.10 Breach of warranty
- s.15 Contracting out: consumer insurance contracts
- s.16A Contracting out of the implied term about payment of claims: consumer and non-consumer insurance contracts
- s.16 Contracting out: non-consumer insurance contracts
- s.18 Contracting out: group insurance contracts