Law Commission in England Seeks Faster Insurance Payouts
The Law Commission has urged insurance companies to make faster insurance payouts so that there would be no delays in compensating the claims of valid claimants. It is a notice that insurers should be legally obliged to pay quickly the compensations without any delays by the insurance companies. The Law Commission said that the current system of insurance contract law in Wales and England is Unfair.
Small businesses in England and Wales have found hard to recover their losses or unexpected events like fires and floods. These businesses have to wait up to 6 months of time for an insurance payout, and also no compensation for that waiting period.
The Law Commission held consultations with its Scottish counterpart with the propose that, insurance contract law in England and Wales must follow the principles of normal contract law and should be brought ion par with the law in Scotland. The decision is to take action in changing the insurance contract law in order to safeguard small businesses which were hit by unexpected events.
The Law Commissioner David Hertzell, said that small businesses are struggling more to recover their business interruptions after the riots, fire, floods that are particularly vulnerable to late payment of insurance claims. They are seeking to make a rule that insurers need to compensate for the claims against policyholders and would be paid on time.
By this we can expect that in England, there may be an insurance contract law which will be fair, principled and in line with the today’s commercial realities.