Airmic has noted the continued presence of conditions precedent to liability in insurance policy wordings. Indeed while the positive changes to English insurance law brought about by the Insurance Act 2015 (the “Act”) (such as the down grading of the treatment of warranties under section 10 and the abolition of basis clauses by section 9 of the Act) are warmly welcomed, experience suggests that the use of conditions precedent to liability has actually increased. This has been reflected in members reporting an increased incidence of claims being declined for breach of notification clauses, which are still commonly expressed by insurers as conditions precedent to liability.
Airmic therefore issues this guide to alert members and help them identify these policy clauses and their effects. Airmic also offers its members a simple solution to guard against the potentially arbitrary consequences that a breach of a condition precedent to liability can bring about in relation to claims.