Equinox welcomes the introduction of the UK’s new Insurance Act which comes into effect on 12 August 2016.

Whilst the old 1906 Act has done good service over the years, it needed updating to reflect the needs of modern world. It had also become out of step with best insurance law practice in other countries.

The new Act ensures that the customer will always be treated fairly in a claims situation. Whilst Equinox has always gone beyond the terms of the old Act in order to make sure this happens, it is good that the Act is now updated to reflect our best practice.

There are two main changes that affect credit insurance.

The first change is that a breach of any policy condition has to be relevant and material (i.e. it either caused the loss or made it worse) otherwise the insurer cannot deny or restrict a claim based on that breach.

The second change is that an innocent or accidental failure when disclosing information no longer automatically gives the insurer the right to void the policy.   In credit insurance disclosure primarily happens when applying for or renewing the policy, and also when applying for a new credit limit or country limit. Under the new Act, the Insurer will have a variety of options for redress depending on how much it was affected by the failure to disclose.

In order to bring our policy wordings up to date with the new Act, we have made two small changes to the parts of the text which describes disclosure. These changes are highlighted below:

Obligations of the Insured

Disclosure

At all times, including but not limited to, initial placement or renewal of the policy and when applying for Credit Limits and Country Limits, the Insured must disclose all material facts and all representations must be materially accurate.

Disclosure

You must have disclosed and continue at all times to disclose all facts which might affect the risk insured under this policy. This applies, without limitation, to the proposal form (which is incorporated into this policy as its basis) and to the statements made when applying for Credit Limits and Country Limits on an ongoing basis.

General Conditions

Fraud

Any fraudulent conduct on your part in relation to this policy or a claim under it or to any transaction to which this policy applies, will render this policy void and we shall retain any premium paid.

Misrepresentation and fraud

Any misrepresentation, whether fraudulent or otherwise, or fraudulent conduct on your part in relation to this policy or a claim under it or to any transaction to which this policy applies, will render this policy void but we may retain any premium paid.

Please note that Equinox Policies that are issued outside of the UK are not affected by these changes. Equinox Global Limited, August 2016

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