{"id":1647,"date":"2024-05-03T14:43:46","date_gmt":"2024-05-03T14:43:46","guid":{"rendered":"https:\/\/www.simplybusiness.co.uk\/legal\/insurance-act-2015\/"},"modified":"2025-07-23T15:38:03","modified_gmt":"2025-07-23T15:38:03","slug":"insurance-act-2015","status":"publish","type":"page","link":"https:\/\/www.simplybusiness.co.uk\/legal\/insurance-act-2015\/","title":{"rendered":"The Insurance Act 2015: a summary"},"content":{"rendered":"\n

LEGAL<\/p>\n\n\n\n

The Insurance Act 2015: a summary<\/h1>\n\n\n\n

What is the Insurance Act 2015?<\/h2>\n\n\n\n

The Insurance Act 2015 is new legislation that came into effect on 12 August 2016. It makes some important changes to your relationship with your insurer, including rules regarding when your insurer is allowed to reject a claim. It\u2019s designed to make insurance clearer and fairer.<\/p>\n\n\n\n

The Act itself is pretty technical, so we\u2019ve explained three of the key elements here in plain English. For full details and the legal wording please refer to your policy wording,<\/strong> which forms part of the terms and conditions of your insurance policy.<\/p>\n\n\n\n

1. Warranties and conditions precedent<\/h3>\n\n\n\n

Background<\/h4>\n\n\n\n

\u2018Warranties\u2019 are pre-contractual promises that you give to your insurer in order for your insurance policy to remain valid.<\/p>\n\n\n\n

A \u2018condition precedent\u2019 means that the validity of your insurance is dependent upon something.<\/p>\n\n\n\n

Changes to warranties and conditions<\/h4>\n\n\n\n

Previously, if you breached a policy warranty at any time during the year you were insured, your insurer could use this as a reason for \u2018avoiding\u2019 your policy entirely from the date of the breach. \u2018Avoiding\u2019 is a technical term for cancelling your policy from its inception date, and treating it as if it had never existed.<\/p>\n\n\n\n

Now, if you breach a warranty (e.g. you don\u2019t do something that you\u2019ve told the insurer you will do, like setting an alarm when you leave the property unattended), your cover is only suspended during the time of the breach. If you change things so that you\u2019re compliant, your insurer can\u2019t use the breach as a reason for refusing claims made once you\u2019re compliant again.<\/p>\n\n\n\n

And if you breach another term of your policy, such as a \u2018condition precedent to liability\u2019, as long as you can prove that your non-compliance didn\u2019t increase the risk of the loss, the insurer can\u2019t rely on this as a reason for denying your claim.<\/p>\n\n\n\n

Example<\/h4>\n\n\n\n

You buy your business buildings insurance<\/a> policy online, and due to the amount of contents you want to insure, the insurer states that you must have an alarm in operation when the premises is left unattended. The presence of a burglar alarm is now a \u2018condition precedent to liability\u2019 and it\u2019s stated on your insurance contract.<\/p>\n\n\n\n

A few months later, your business premises is damaged by flooding, and you make a claim on your business buildings insurance. The burglar alarm you have often doesn\u2019t work properly, and you need to get it fixed. At the time of the loss, the alarm wasn\u2019t properly set.<\/p>\n\n\n\n

An intruder alarm wouldn\u2019t have made any difference to the flooding, so your insurer can\u2019t use this as a reason for refusing to pay your claim.<\/p>\n\n\n\n

Important<\/strong>: If you\u2019d been the victim of a burglary, your insurer could still use your lack of a fully-functioning alarm system as a reason for refusing your claim, so it\u2019s essential that you provide accurate information when you\u2019re buying your insurance.<\/em><\/p>\n\n\n\n

2. Fraudulent claims<\/h3>\n\n\n\n

The Insurance Act has also made the rules for dealing with fraudulent insurance claims clearer.<\/p>\n\n\n\n

The Act states that if a fraudulent claim is made, your insurer:<\/p>\n\n\n\n