Mulling over the Consumer Insurance (Disclosure and Representations) Act 2012

The Consumer Insurance (Disclosure and Representations) Act 2012 (CIDRA) came into force in April 2013. CIDRA has changed the landscape — it impacts on any insurer or broker dealing with consumer/personal insurance. The principles behind it are also likely to impact on those dealing with commercial policies in the future. 

The principles behind the new law are as follows: CIDRA only applies to consumer insurance contracts; there is a fundamental shift away from the policy holder’s duty of full disclosure (ie, the duty of utmost good faith) — that duty is replaced with a duty to take ‘reasonable care’ not to make a misrepresentation to the insurer; where previously complaints from consumers have been decided by the Financial Ombudsman Service (FOS), it would use the principles behind CIDRA anyway to ensure fair outcomes for consumers, so CIDRA therefore gives a statutory footing for the FOS approach; and basis clauses abolished.

The onus is now on insurers to ensure that all material information is obtained through questions put to the proposer — put simply, if you don’t ask, you don’t get. Therefore, the adequateness of the procedures used by insurers to obtain information will need to be assessed in light of this shift…

If you are registered and logged in to the site, click on the link below to read the rest of the Mills & Reeve briefing. If not, please register or sign in with your details below.

Sign in or Register to continue reading this article

Sign in


It's quick, easy and free!

It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.

Register now

Why register to The Lawyer


Industry insight

In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.


Market intelligence

Identify the major players and business opportunities within a particular region through our series of free, special reports.


Email newsletters

Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.

More relevant to you

To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.

Analysis from The Lawyer

  • head1

    LPOver and out?

    The trend for unbundling legal work is advancing through the law firm ranks but there is still resistance in some quarters - namely in-house. We asked why


Fountain House
130 Fenchurch Street

Turnover (£m): 79.50
No. of lawyers: 367