Insurers face damages for delaying claims payment

It also proposed to widen the scope for which life insurance policies may be taken out to cover another person, including children and cohabitants. As COVER reported, the move to allow damages was first consulted on last year and is supported by the ABI and much of the insurance industry. It would bring English law into parity with that in Scotland and match industry practice as required by industry regulators including the Financial Ombudsman Service (FOS) and FSA. The Law Commission is proposing the insurer's primary obligation should be ‘not as a duty to prevent loss but to pay ...