Insurance Act 2015, section 9

Category: Statutes and regulation · Reviewed by the Apex broking team · Last reviewed 2026-08-22 · ~5 min read

What section 9 says

Section 9 is headed “Warranties and representations”. Subsection (1) sets its scope: it applies to representations made by the insured in connection with a proposed non-consumer insurance contract, or a proposed variation to a non-consumer insurance contract. Subsection (2) then provides that such a representation “is not capable of being converted into a warranty by means of any provision of the non-consumer insurance contract (or of the terms of the variation), or of any other contract (and whether by declaring the representation to form the basis of the contract or otherwise)”.

The drafting is deliberately wide. It catches the classic basis clause on a proposal form, the same wording repeated in a schedule or a slip, and any attempt to achieve the same result through a separate agreement. It also catches attempts to do it indirectly, by any route other than an express declaration. The Act came into force on 12 August 2016 and applies to contracts entered into, and variations agreed, on or after that date.

Why it mattered: the basis of contract clause

Before the Act, a basis clause worked as a conversion device. The proposer signed a declaration that the answers given “form the basis of the contract”, and every answer — however trivial, however immaterial to the risk — became a warranty. Under section 33(3) of the Marine Insurance Act 1906 a warranty had to be exactly complied with whether or not it was material to the risk, and breach discharged the insurer from liability automatically. The combination meant that a single inaccurate answer about a matter that had nothing to do with the loss could defeat the whole policy.

Section 9 removes the conversion step. The statement remains a representation, so it is assessed under the duty of fair presentation in Part 2 of the Act. If the representation is materially wrong and induced the contract, the insurer has the proportionate remedies in Schedule 1 to the Act — avoidance with return of premium where it would not have written the risk at all, imposition of the different terms it would have applied, or a proportionate reduction of the claim payment where it would have charged more. Only a deliberate or reckless breach allows avoidance with retention of premium.

Non-consumer contracts only — and the consumer equivalent

Section 9 is expressly limited to non-consumer insurance contracts. That is not a gap. The equivalent provision for consumers arrived earlier, in section 6 of the Consumer Insurance (Disclosure and Representations) Act 2012, which is worded almost identically and has applied to consumer insurance contracts since 6 April 2013. Between the two provisions, the basis of contract clause is now of no effect across the whole of UK insurance.

Section 9 cannot be contracted out of

Most of the Insurance Act 2015 can be varied to the insured’s disadvantage in a commercial contract, provided the insurer satisfies the transparency requirements in section 17. Section 9 is the exception. Section 16(1) provides that a term of a non-consumer insurance contract, or of any other contract, which would put the insured in a worse position as respects representations to which section 9 applies is to that extent of no effect — with no transparency carve-out. A wording that tries to reinstate a basis clause, however clearly it is flagged, does not work.

What to look for in a commercial wording

Basis clauses still turn up in older wordings, in scheme paperwork that has not been refreshed, and occasionally in bespoke declarations attached to a slip. They are unenforceable, but their presence is a useful signal that the rest of the document may not have been reviewed since 2016. More important in practice is the residual risk: an insurer that can no longer convert answers into warranties may instead draft the same subject matter as an express warranty, a condition precedent to liability, or a risk-mitigation term. Those routes remain open and are unaffected by section 9, so the question at placement is not just whether a basis clause survives but what the wording now does instead.

The practical broking point is that accuracy on a proposal form still matters a great deal. Section 9 changes the consequence of an inaccuracy, not the obligation to present the risk fairly.

Frequently asked questions

Does section 9 mean warranties no longer exist in commercial insurance?

No. Express warranties remain perfectly valid and are used routinely. Section 9 only stops a representation from being turned into a warranty by a declaration such as a basis of contract clause. Where a wording contains a properly drafted express warranty, section 10 of the Act governs the effect of breaching it.

Does section 9 apply to renewals and mid-term changes?

It applies to representations made in connection with a proposed non-consumer insurance contract and to a proposed variation to one. A renewal is a new contract, so section 9 applies to the representations made for it, and variations are expressly covered by subsection (1)(b).

Can an insurer contract out of section 9 if it flags the term clearly?

No. Section 16(1) makes any term putting the insured in a worse position as respects section 9 representations of no effect, and unlike the rest of the contracting out regime it is not subject to the section 17 transparency requirements.

Related entries

• Basis of contract clauses: abolition under the Insurance Act 2015
• Insurance Act 2015, section 10
• Fair presentation of the risk
• Warranties versus representations
• Consumer Insurance (Disclosure and Representations) Act 2012
• Commercial insurance UK

This entry is part of the Apex Insurance Wiki. It states the position as at August 2026. Last reviewed 2026-08-22. Next review: 2027-02-22. It is general insurance information, not legal advice, and it is not regulated advice on a specific policy.

Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority (FRN 724952). This page is general information, not advice on a specific policy.