Government announces changes to insurance law

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Government announces changes to insurance law

Tue 17th May 2011

The coalition government has announced plans to radically change the relationship between consumers and insurance providers.

As part of a new bill [comma] emphasis will be removed from a customer's duty to disclose their personal information.

Instead, The new consumer insurance (disclosure and representations) bill places the onus on insurers to obtain specific information from consumers before they issue a policy.

Launched today (May 17th), the guidelines aim to provide better protection for customers as well as reducing industry costs.

Changes have emerged due to the complex nature of current laws, which could prove confusing for customers with little industry knowledge.

Financial secretary to the Treasury Mark Hoban said: "The government is committed to strengthening consumer protection in financial services and these reforms will help meet this commitment."

The Treasury recently took action to prevent creditors from exploiting poorer countries through the UK court system.

New legislation stops companies using British courts to extract harsh payments from countries with little money for debts that could have been purchased for a fraction of the cost.

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