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Guest Blog: Countdown to Insurance Act 2015 - Basis of Contract

Posted by Joanne Staphnill on Aug 10, 2016 11:00:00 AM
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WIth only two days to go until The Insurance Act 2015 (IA2015) coming into force (on 12 August 2016) our series of short blogs written by Joanne Staphnill from Triton Global takes a look at how 'basis of contract' will be affected.

What's in store?

If there is a ‘basis of contract’ clause in the placing form or the policy – abracadabra! - it can no longer turn all the representations made at placing, into warranties.  There is still a duty of fair presentation, but insurers can no longer rely on those representations as if they are warranties by virtue of a basis of contract clause.

What does it mean for your insurer?

For many years many insurers have incorporated ‘basis of contract’ clauses into proposal forms and policy documents.  There will be a logistical challenge for all insurers to make sure that all their standard proposal forms and standard policy wordings are updated to remove any now-defunct ‘basis of contract’ wording.

In turn brokers will probably need to keep a weather eye out for any glitches that result in policies being produced that still have ‘basis of contract’ wording in them.  Any such stray ‘basis of contract’ clauses are now either completely ineffective, or will give rise to difficult questions of construction – which is not great from a ‘contract certainty’ perspective.  

What's next?

Pop back tomorrow to read the next installment:

About the author 


Joanne is a Solicitor and a Partner in the London office of Triton Global, an international firm of solicitors specialising in the defence of insurance claims.  She practices in insurance law, including advising on coverage and drafting insurance policies.  She also specialises in the defence of professional negligence claims against a range of professionals, but particularly solicitors, insurance brokers and clinicians.  She enjoys singing with the Lloyd’s Choir and motorcycling (yes really).” 

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Topics: Insurance Act