The end of basis of the contract clauses?

Nigel Brook, partnerClyde & Co

It has recently been reported two leading insurers will no longer include “basis of the contract” clauses in their UK policies. This comes as the Association of Insurance and Risk Managers (Airmic) is pursuing a campaign against the clause. The Lloyd’s Market Association has also given its support in principle to the abolition of the clause and the industry seems increasingly amenable to removing the clause ahead of any possible statutory reform.