Insurance Law

Question

Where an insurer had unreasonably refused to pay a claim or paid it only after an unreasonable delay, the law in England and Wales previously did not provide a remedy to the insured. However, the law has now changed.

Discuss why the law did not previously provide the insured with a remedy and why the law needed to be reformed. Critically assess whether the current law is satisfactory.

Your answer should focus on non-consumer insurance policies.

The Executive Summary
Your essay should start with an Executive Summary of your argument. An Executive Summary is a concise document with a word count of 600 words, and that word count is separate to the word count of the essay. It should summarise your argument made in the main essay.
It could be read separately from the main document and should make perfect sense to the reader, as in practice decisions are sometimes made on the basis of executive summaries.

Your Executive Summary should:
• Contain brief analysis of the question / issue within the question
• Summarise the main argument
• Follow the structure of the essay
• Provide brief justifications for the arguments made
• Only include materials used for the main essay
• Contain a clear conclusion

Guidance Notes:
Where an insurer had unreasonably refused to pay a claim or paid it only after an unreasonable delay, the law in England and Wales previously did not provide a remedy to the insured. However, the law has now changed.

Introduction
You can commence with a brief explanation as to how you intend to approach the question, in terms of structure of the answer.

Main body
You need to discuss why the law did not previously provide the insured with a remedy when an insurer had unreasonably refused to pay a claim or paid it only after an unreasonable delay.
Remember to use case law in support of your discussions.
You then need to consider why the law needed to be reformed. Use academic and other third
party opinion in support of your arguments.
Set out what the current law is when an insurer unreasonably refuses to pay a claim or only
pays it after an unreasonable delay. Remember to use primary sources in your discussions.
Finally, you need to consider whether the current law is satisfactory. Discuss any differing
views on the matter and try to use academic and/or other third party opinion in support of your
arguments.

Conclusion
This should flow from the arguments raised in the main body. In particular, is the current law
on the liability of an insurer for non-payment or late payment of an insurance policy
satisfactory? Note that there is no right or wrong answer but your arguments must be well
supported.