Insurance Contracts Law Draft Bill

Open date: 17 June 2014

Close date: 02 July 2014

Publication of the draft Bill

In January and March this year, we released draft clauses of the Insurance Contracts Bill for consultation. We are now in a position to make public the draft Bill in its entirety, together with draft Explanatory Notes, for further consultation.

We are grateful for the large number of comments received on the earlier clauses. We have made changes in response, and believe that much of the draft Bill should now be regarded as settled. However, there are two clauses, currently in italics, which are still the subject of discussion with some stakeholders. They are:

  • Clause 11 (Terms relevant to particular descriptions of loss)
  • Clause 14 (Implied term about payment)

The special procedure for Law Commission Bills

In October 2010, the House of Lords approved a new procedure for Law Commission Bills, to be used exclusively for those that attract a broad consensus of support in Parliament. Details are available at:

We are hopeful that the draft Bill may be suitable for this procedure. We are aware that this Parliamentary session is particularly short. It ends on 30 March 2015.

HM Treasury consultation

HM Treasury, which would be the sponsoring department, intends to consult on whether the draft Bill has a broad consensus of support, to determine whether it is suitable for consideration under the procedure for Law Commission Bills.

In order to assess whether consensus will be reached, HM Treasury will need to consult on the following questions:

Leaving aside the two clauses in italics:

  • (1) Do you agree that reform in this area is desirable? Yes/No
  • (2) Do you agree with the general approach of the draft Bill, as explained by the Explanatory Notes? Yes/No

HM Treasury will consult separately on whether consensus can also be reached on the two italicised clauses, which are still the subject of some discussion with stakeholders:

  • (3) Do you agree with the policy reflected in clause 11 (Terms relevant to particular descriptions of loss)? Yes/No
  • (4) Do you agree with the policy reflected in clause 14 (Implied term about payment)?  Yes/No

Responses to questions 3 and 4 will be important in determining whether or not there is sufficient consensus to include these clauses within the Bill.

HM Treasury is seeking responses to and by Wednesday 2 July.

For further information, please contact:

Limited consultation on draft clauses: January and March 2014

The purpose of the consultation was not to discuss the actual form of words that appear in the draft, but to ascertain whether the current wording met our policy objectives as set out in two of our Insurance Contract Law consultation papers: Post-Contract Duties and other Issues and The Business Insured's Duty of Disclosure and the Law of Warranties

Fair presentation and Late payment January 2014
Insurance stakeholder notes January 2014
Insurers' remedies for fraudulent claims by members of group insurance schemes
Contracting out
Accompanying notes March 2014

This consultation relates to the review of insurance contract law that we are carrying out jointly with the Scottish Law Commission.

Sign up for
Law Commission
consultation updates

Enter email address:

Also gives you access to other government law-related updates.