Law Comissions propose warrantee wind up

The English and Scottish Law Commissions overhaul of insurance contract law pulls no punches in its attempt to eradicate consumer misunderstanding

The English and Scottish Law Commissions have now published their second Issues Paper, this time dealing with warranties. The perceived mischiefs are that consumers do not understand "basis of the contract" clauses and that breach of warranty can automatically discharge an insurer from liability even if unconnected to the loss. It is therefore proposed that all "basis of the contract" clauses are abolished, together with warranties of past or existing fact in a consumer context, although they