Insurance Act 2015 · Case law

Insurance Act 2015 case law refinements 2026

Reviewed by Apex Insurance Brokers · Published 15 July 2026

Insurance Act 2015 has now been in force for over 10 years. Case law has refined key aspects — fair presentation, proportionate remedies, s.13A late payment, and s.12 fraudulent claims.

Fair presentation duty (s.3)

The threshold: material facts that would influence a prudent underwriter.

Refinements from case law: reasonable enquiry standard for insureds.

'Should have known' facts — how far does the duty extend.

Business-scale considerations: what a larger firm should know differs from smaller.

Broker involvement in the presentation increasingly scrutinised.

Proportionate remedies (s.4-8)

Deliberate/reckless non-disclosure: insurer can avoid entirely.
Careless non-disclosure: proportionate remedies based on what insurer would have done.
'Reasonable' remedies for careless non-disclosure emerged through cases.
'Would have declined' vs 'would have charged higher premium' remains fact-specific.
Innocent non-disclosure — contractual clauses cover this beyond the Act.

Late payment damages (s.13A)

Right to damages for late payment established.

Case law: 'reasonable grounds to dispute' defence often successful for insurers.

Investigation-pace reasonableness: how long is too long.

Consequential damages available — but proof of causation strict.

Section 13A claims still relatively rare in reported case law.

Fraudulent claims (s.12)

Complete forfeiture: even genuine portion of fraudulent claim can be denied.

Prospective policy termination: from date of fraud, not from inception.

Balance of probabilities standard for fraud proof.

Fraudulent devices used to advance a genuine claim: still trigger s.12.

Boundaries with 'exaggeration' vs 'fraud' remain fact-specific.

Practical guidance for professional firms

Approach placement submissions comprehensively — better to over-disclose than under.
Document the source of the disclosure — who said what and when.
Broker involvement in framing the submission adds a layer of due diligence.
At claim time, be scrupulous in evidence provision.
Never overstate or embellish — even a small overstatement can compromise the whole claim.
Track case law developments through broker updates or professional bodies.

Frequently asked

Has the Act reduced disputes?

Modestly — it's clarified some doctrine but disputes continue in fact-heavy scenarios.

Are proportionate remedies commonly applied?

Yes for careless non-disclosure. Practical application often involves premium adjustment rather than claim rejection.

Is s.13A meaningful for professional PII claimants?

Sometimes. Reasonable-grounds defence limits its practical value but where insurer clearly delays, s.13A applies.

How strict is s.12 in practice?

Very strict. Even relatively small overstatements can trigger the clause.

Does the Act protect brokers?

Not directly — brokers have their own duties. Fair-presentation is the insured's duty.

What's changed recently in case law?

Fair-presentation duty refinements around reasonable enquiry standards continue to evolve.

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