Withdrawn 15 January 2005
Association of British Insurers
Statement of General
The following Statement of normal insurance (e) So far as is practicable, insurers will avoid
practice applies to general insurances of asking questions which would require expert
policyholders resident in the UK and insured in knowledge beyond that which the proposer
their private capacity only. could reasonably be expected to possess or
obtain or which would require a value
judgement on the part of the proposer.
(f) Unless the prospectus or the proposal form
(a) The declaration at the foot of the proposal form
contains full details of the standard cover
should be restricted to completion according to
offered, and whether or not it contains an
the proposer’s knowledge and belief.
outline of that cover, the proposal form shall
(b) Neither the proposal form nor the policy shall include a prominent statement that a specimen
contain any provision converting the copy of the policy form is available on request.
statements as to past or present fact in the (g) Proposal forms shall contain a prominent
proposal form into warranties. But insurers warning that the proposer should keep a
may require specific warranties about matters record (including copies of letters) of all
which are material to the risk. information supplied to the insurer for the
(c) If not included in the declaration, prominently purpose of entering into the contract.
displayed on the proposal form should be a (h) The proposal form shall contain a prominent
statement:- statement that a copy of the completed form:-
(i) drawing the attention of the proposer to (i) is automatically provided for retention at
the consequences of the failure the time of completion; or
to disclose all material facts,
(ii) will be supplied as part of the insurer’s
explained as those facts an
normal practice; or
insurer would regard as likely
to influence the acceptance (iii) will be supplied on request within a period
and assessment of the of three months after its completion.
proposal; (i) An insurer shall not raise an issue under the
proposal form, unless the policyholder is
(ii) warning that if the
provided with a copy of the completed form.
proposer is in any doubt
about facts considered
material, he should Claims
(a) Under the conditions regarding notification of
(d) Those matters which a claim, the policyholder shall not be asked to
insurers have found do more than report a claim and subsequent
generally to be material developments as soon as reasonably possible
will be the subject except in the case of legal processes and
of clear questions in claims which a third party requires the
proposals forms. policyholder to notify within a fixed time
where immediate advice may be required.
Withdrawn 15 January 2005
(b) An insurer will not repudiate liability to Commencement
indemnify a policyholder:-
Any changes to insurance documents will be
(i) on grounds of non-disclosure of a material made as and when they need to be reprinted, but
fact which a policyholder could not the Statement will apply in the meantime.
reasonably be expected to have
(ii) on grounds of misrepresentation unless it is
a deliberate or negligent misrepresentation
of a material fact; Insurers will continue to develop clearer and
more explicit proposal forms and policy
(iii) on grounds of a breach of warranty or
documents whilst bearing in mind the legal
condition where the circumstances of the
nature of insurance contracts.
loss are unconnected with the breach
unless fraud is involved.
Paragraph 2 (b) above does not apply to Marine
and Aviation policies.
(c) Liability under the policy having been
established and the amount payable by the
insurer agreed, payment will be made
without avoidable delay.
(a) Renewal notices shall contain a warning
about the duty of disclosure including the
necessity to advise changes affecting the
policy which have occurred since the policy
inception or last renewal date, whichever Disputes
was the later.
The provisions of the Statement shall be taken
(b) Renewal notices shall contain a warning that into account in arbitration and any other referral
the proposer should keep a record (including procedures which may apply in the event of
copies of letters) of all information supplied to disputes between policyholders and insurers
the insurer for the purpose of renewal of the relating to matters dealt with in the Statement.
The Association of British Insurers represents around 440 insurance companies, which between them account
for over 95% of the business of UK insurance companies. The Association represents insurance companies to
the Government and to regulatory and other agencies, and it provides a wide range of services to its members.
L 249 August 1997 (Original printed January 1986)
Association of British Insurers,
51 Gresham Street, London EC2V 7HQ