Insurance Act 2015 - Our Philosophy & Practice

03 August 2016

The Insurance Act 2015 comes into effect on 12 August 2016, and it will apply to all UK non-consumer insurance contracts that start, are varied or have a rate review on or after that date. After reviewing the new legislation, we are now able to confirm how this will impact the policies offered by Ellipse.


The major changes introduced by the Act are as follows:


  • The policyholder's duty of fair presentation
  • New remedies for the non-disclosure of material facts
  • Clarification on the remedies in the event of fraudulent claims

Importantly, as Ellipse already applies the principles which are included in the new Act, very little will change. Our products and processes will remain the same.


However one change to our terms and conditions has been necessary to protect the interests of employees and their families in the event of non-disclosure of a material fact by an employer, where cover can still be provided subject to an additional premium. In such circumstances, rather than reduce the claim amount paid proportionately, we will pay the claim in full and require that the employer pays the additional premium due. We have therefore contracted out of the Insurance Act 2015 Schedule 1 paragraphs 6 and 11, which is the section specific to non-deliberate/not reckless non-disclosure. 


Advisers - A detailed explanation of this change and what the Act means for you and your clients can be found here


Employers - A detailed explanation of this change and what the Act means for you can be found here.