The Enterprise Act 2016: preserve your right to claim late payment damages
The Enterprise Act 2016 comes into force today and gives policyholders a right to claim damages in the event of late payment of claims. The Act applies to any (re)insurance policy placed or renewed on or after today's date, if it is subject to the laws of England and Wales, Scotland, or Northern Ireland.
Our latest Adviser, The Enterprise Act 2016 Comes Into Force - New Right for Policyholders to Claim Damages for Late Payment of Insurance Claims, summarises the new legislation and provides some practical points for policyholders to consider. It explores:
- The impact of the new legislation on (re)insurance policies placed or renewed on or after 4 May 2017.
- How insurers can contract out of the new implied term, in non-consumer policies, provided the insurer meets the "transparency requirements" of the Insurance Act 2015.
- The time limit for claims to be brought against insurers for breach of the implied term.
- Practical points for policyholders to consider.
- Whether the Enterprise Act 2016 is likely to lead to a high volume of successful late payment claims against insurers.