Consumer Insurance Contracts Act Update
Wed Jul 22 2020
On 17 July 2020, the Minister for Finance announced the commencement date(s) for the Consumer Insurance Contracts Act 2019. The bulk of the provisions of the Consumer Insurance Contracts Act will come into effect on 1 September 2020. The commencing of the majority of the provisions of this Act will, amongst other things, place an onus on insurers to handle claims promptly and fairly, and reform other aspects of insurance law such as the practice of warranties and replacing the principle of insurable interest. Brokers Ireland communicated with members in April and June 2020 in relation to the Act and copies of these communications may be accessed on the below links
The remaining Sections (Sections 8, 9, 12, 14 (subsections 1-5) will come into effect on 1 September 2021. These sections relate to the requirement of insurers to disclose pre-contractual information to the consumer, and the requirement of insurers to provide a schedule of the past 5 years of premiums and claims to the consumer at renewal. It was reckoned by the Minister that a delay of one year in the commencement of these provisions would be in the best interest of the consumer and would allow the insurance industry sufficient time to put in place the necessary new systems and processes.
The Minister has stated that he believes this Act is an important part of insurance reform and its implementation will balance the contractual relationship between insurer and consumer.
Brokers Ireland will be in touch with members in early course regarding a webinar so that Members will be comprehensively educated on what the new Act means for all Brokers. If you have any queries on the contents of this email, please contact email@example.com.