Reflections On Values: The Law Commissions’ Proposals with Respect to Remedies for Breach of Promissory Warranty and Pre-Formation Non-Disclosure and Misrepresentation in Commercial Insurance

Abstract

Insurance contract law nevertheless possesses certain distinctive features. Underpinning the law on incorporation of contract terms is the fundamental idea of consent as the basis of contractual obligation. Turning to meaning, the law relating to contractual interpretation is value neutral in the sense that it is not designed to pass judgment on the fairness or advisability of contract terms. Insurance contract law as codified in the Marine Insurance Act 1906 subscribes strongly to the principle of commercial certainty. Party autonomy and certainty may be the dominant values in the insurance contract law codified in the Marine Insurance Act 1906. The Law Commissions’ proposals take English commercial insurance contract law a stage further down the line towards good faith. The Law Commissions also ask whether the voyage doctrines of marine insurance law should be brought within the proposed warranty reforms.