English Insurance Law Reforms: Lessons for South Africa

Abstract

Insurance law in the United Kingdom (UK) has recently undergone significant reforms. Until 2015, insurance law in the United Kingdom was still largely regulated by the Marine Insurance Act 1906. This meant that a statute created over a hundred years ago was still regulating insurance law. The need for the more recent reforms was evidently dire. The Law Commission undertook an investigation that highlighted the need for new insurance laws. The result was the enactment of the Insurance Act 2015. There are some significant changes in the new Act concerning fraudulent claims, breaches of good faith and the duty of disclosure. The new laws appear to be much more pro-policyholder than was the case in the previous regime. This article undertakes a detailed analysis of these reforms and also presents a comparison with South African laws. The ultimate question is whether South Africa can learn anything from the recent reforms to UK insurance law.

Bridging the gap: Enhancing understanding of insurance contracts to minimize claims rejections

“…Their target is, therefore, primarily to find a way to convince the applicant to commit to an insurance contract. Huneberg (2019) provides an overview of the insurance law in South Africa, and explains that the law in South Africa emphasises on the importance of 'good faith' being upheld in all insurance contracts. The duty of good faith holds that there is a duty on the insured and the insurer to disclose to each other, prior to the conclusion of the contract of the insurance, every fact relevant and material to the risk or the assessment of the premium (Huneberg 2019).…”

“…Huneberg (2019) provides an overview of the insurance law in South Africa, and explains that the law in South Africa emphasises on the importance of 'good faith' being upheld in all insurance contracts. The duty of good faith holds that there is a duty on the insured and the insurer to disclose to each other, prior to the conclusion of the contract of the insurance, every fact relevant and material to the risk or the assessment of the premium (Huneberg 2019). When one investigates the duty of good faith, this entails both the insurer and the insured to ensure that all information provided is the utmost truth, and that all information that the insurer needs to know has been provided by the insured.…”