The Insurance Bill was introduced in the House of Lords on 17 July 2014, as the result of recommendations made by the Law Commission and the Scottish Law Commission in a report published on the same date.

The majority of the Law Commissions’ recommendations were accepted by the Government and the Bill included all of their recommendations apart from two provisions: the clause relating to late payment and the clause concerning warranties and other terms relevant to particular descriptions of loss (clause 11). The Government said that it did not consider these provisions to be sufficiently uncontroversial for the Law Commission Bills procedure at that time. The Government asked the Law Commissions to continue to work with stakeholders to find a workable solution on these points, which would be introduced at the next legislative opportunity.

On 1 December 2014, the Law Commission produced a revised draft Clause 11 for the Insurance Bill together with an accompanying note, explaining its approach , dealing with breach of terms (including warranties) of an insurance contract which are irrelevant to the actual loss.

The Law Commission welcomes comments on the draft revised clause and the approach by 9 December 2014. The Law Commission says that it may still be possible to include “clause 11”, in some form, in the Insurance Bill if general agreement can be obtained in time. If not, the Law Commission may not be involved in any future action by the Government on this policy issue.

The Law Commission has also published an explanatory note setting out, among other things, the amendments to the Third Parties (Rights against Insurers) Act 2010 that are contained in the Insurance Bill and that will enable this Act to come into force