ABSTRACT
The disturbance of the otherwise homogeneous acceptance of the post-contractual flavour of the duty of utmost good faith started with the House of Lords’ decision in The Star Sea. The deterrent aspect of this rule of law is maintained if the assured’s claim is governed by the duty of utmost good faith. The truth is that the remedies available for a breach of the duty of utmost good faith is inadequate in many instances from both the assured’s and the insurer’s perspective. The Law Commission will soon be turning its eye towards the law governing the post-contractual duty of utmost good faith, fraudulent claims, and the assured’s remedies for the insurer’s late payment of claims. The perceived deficiencies in the law in other areas, notably in the case of the insurer’s late or non-payment of claims, can be catered for by the duty of utmost good faith.
