ABSTRACT
The common law relating to the late payment of insurance claims is settled in respect of contracts of indemnity insurance, but it does not appear to have been settled in respect of contracts of contingency insurance. With respect to claims under contracts of indemnity insurance, at common law, if the insurer failed to pay a claim within a reasonable period of time or indeed in accordance with the express terms of the insurance contract, the assured’s remedy was limited to the indemnity promised by the insurer and interest. In July 2014, the Law Commission published its report no. 353 and supported the case for reform, on the grounds that the common law rule denying damages for the late payment of insurance claims appeared to lack principle, the law was unfair and unexpected, and the law was increasingly out of step with other legal developments.
