A2z insurance::

The Law payment has reported on responses to its paper on “Compensation for Late Payment and the Insurer’s responsibility of Good Faith”.
All 32 consulates but one approved that the law in this area should be transformed and the Commission states: “It is remarkable that all 12 of the insurers and insurance associations who responded thought there should be some change to the current law.”
Under commonplace contract law philosophy, where one party breaches a contract, the innocent party may maintain damages for the loss suffered.
However, according to the Commission, the English treatment of insurance contracts is out of step with this philosophy.
All 32 consulates but one agreed that the law in this area should be reformed and the Commission states: “It is noteworthy that all 12 of the insurers and insurance associations who responded thought there ought to be some change to the in progress law.”
The paper asks whether a policyholder should be entitled to damages where the insurer has refused to pay a valid insurance claim, or has paid only after considerable delay.
Further proposals will be published in a consultation paper in Spring 2011