New rules for Consumer Insurance

legal updates

Ensure that proposals for 'drive away' motor insurance are accurately completed and any specific questions fully answered.

Read our disclaimer keyboard_arrow_down

This website content is intended as a general guide to law as it applies to the motor trade. Lawgistics has taken every effort to ensure that the contents are as accurate and up to date as at the date of first publication.

The laws and opinions expressed within this website may be varied as the law develops. As such we cannot accept liability for or the consequence of, any change of law, or official guidelines since publication or any misuse of the information provided.

The opinions in this website are based upon the experience of the authors and it must be recognised that only the courts and recognised tribunals can interpret the law with authority.

Examples given within the website are based on the experience of the authors and centre upon issues that commonly give rise to disputes. Each situation in practice will be different and may comprise several points commented upon.

If you have any doubt about the correct legal position you should seek further legal advice from Lawgistics or a suitably qualified solicitor. We cannot accept liability for your failure to take professional advice where it should reasonably be sought by a prudent person.

All characters are fictitious and should not be taken as referring to any person living or dead.

Use of this website shall be considered acceptance of the terms of the disclaimer presented above.

Up to now, when you purchase personal insurance it has been the consumer’s duty to disclose all material facts to the insurer without the insurer necessarily specifying what they want to know. 

This has led to many disputes where insurers have failed to pay out on the basis of some spurious reason such as failure to disclose an in-growing toenail when considering a claim for a heart attack.  These special contracts of insurance have required the consumer to have a duty of ‘utmost good faith’.  Non insurance contracts have merely relied on misrepresentation with no particular duty of disclosure unless specifically asked.  Under the new law it will be the same duty for insurance contracts.

As well as a benefit for taking out personal insurance, retailers, as with all financial services these days, must ensure that proposals for ‘drive away’ motor insurance are accurately completed and any specific questions fully answered.  In case of doubt always refer the customer to the insurer and make a note on the proposal that this has taken place including date and time.

ECSC Group plcMore Secure

On average 55 vulnerabilities are identified daily.

What can I do?

Review your organisations priorities and ask ‘can we afford a breach?’. What do I do during an incident? Who do I involve? When do I involve the ICO?

If you’re unable to answers these questions, you need help from the experts.

Dennis ChapmanIn remembrance of Dennis Chapman 1951 -2015Read More by this author

Related Legal Updates

Customer reneges on agreed not distance sale

Our member explained they do not offer a delivery service and do not engage in distance selling.

Consumer “Handcuffed” by Deduction for Use Settlement

Don’t sign any contract unless you are fully aware of its terms!

Double or nothing – Consumer’s claim dismissed!

The Claimant countered with a request for more than double the amount that our member had offered.

Non-refundable deposits – Where do you stand?

Relevant paperwork should be provided before payment is taken.

Used car warranties – What are you liable for?

If a fault is found to have been developing at the time of sale, this could become the trader’s responsibility to provide a remedy.

Distance Selling Regulations – A thing of the past?

The regulations only apply to consumer contracts, not business-to-business sales, and only apply to sales conducted at a distance.

Accepting Lowball Offers 

What are your legal obligations when a customer makes a significantly low offer which you ”jokingly” accept? Will it be legally binding?

Get in touch

Complete the form to get in touch or via our details below:

Phone
01480 455500
Address

Vinpenta House
High Causeway
Whittlesey
Peterborough
PE7 1AE

By submitting this quote you agree to our Terms & Conditions and Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.