ABSTRACT
The making of a fraudulent claim under an insurance contract has wider implications than the consequences that arise between the parties to the contract. It is common for policies to contain a clause setting out the insurer's remedies should the insured make a fraudulent claim. In the absence of such a clause, the courts have struggled over time with the principles to apply where the insured has behaved dishonestly, given the mix of insurance contract law and public policy involved. The Law Commissions described the law in this area as 'convoluted and confused' in their July 2014 Report, and it was therefore considered ripe for clarification and reform in the Insurance Act. Sections 12 and 13 of the Insurance Act contain the new law and apply to both consumer and non-consumer insurance contracts. Section 12 Insurance Act brings a welcome degree of clarity to the remedies for a fraudulent claim.
