KENNEDYS – Proportionate reduction remedies in EL/PL claims – practical considerations

Author - Various

The Insurance Act 2015 came into force in August 2016, and introduced proportionate remedies which insurers can rely on in certain circumstances. An insurer can proportionately reduce the sum paid out on a claim, where an insured breached its duty of fair presentation of the risk, but its breach was neither deliberate or reckless, and the insurer would have still entered into the policy, but charged a higher premium.