During a short debate on Monday 2 November, the House of Lords discussed (in Grand Committee) the clauses in the Bill that would introduce the remedy of damages for late payment of insurance claims. The Minister, Baroness Neville-Rolfe, noted that these provisions in the Bill would “rectify a gap in the legal regime and encourage responsible payment, for the benefit of policyholders and the perception of the market. These arguments apply for all insurance contracts, including reinsurance, which are treated by the law in the same way as all other non-consumer insurance contracts.”
The amendments debated sought to exclude reinsurance business and large insurance risks (as per the Solvency II definition) from the scope of the late payment remedy. Because they were not pressed to a vote by their proposer, the prospect of the issues being revisited as the Bill proceeds in Parliament cannot be discounted. Indeed, the Peer behind the amendments noted that he “will put further proposals to her [and] I hope that she will read that and consider it again.”
We shall continue to report on the Bill’s further stages via this blog.
About the Author
Alistair Kinley is BLM’s Director of Policy & Government Affairs.
Alistair is responsible for BLM’s engagement with government departments and regulators on policy and public affairs issues and consultations affecting the firm and its customers. He coordinated BLM’s market-facing activities in connection with the Insurance Act 2015 and the consultations which preceded its publication and introduction in Parliament.
He is a member of the Civil Justice Council (CJC), a regular speaker and experienced commentator on legal and procedural reforms and was a contributing editor to the Law Society’s Litigation Funding Handbook (September 2014).