In
regards to a consumer assured, the 1906 Act was totally inappropriate and was
onerous to consumers. This is because the 1906 Act expects a consumer insured
to disclose what is known to him and is deemed to know in the ordinary course
of the business1
when in reality a  consumer assured is an
individual who enters into the contract wholly or mainly for purposes unrelated
to the individual’s trade, business or profession.2
Hence, applying the 1906 Act to consumer insureds would be rather unreasonable.

In 1957, the report submitted by the Law Reform Committee identified the flaws
in the 1906 Act but sadly it was not supported by the governemnts then. The
fact that the governemnts over the years had done nothing to reform the 1906
Act portrayed an image that reforming the Act was unnecessary in the practical
world of the insurance industry.3

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The
CIDRA 2012 is the result of the development of the law. The law has been
reformed to fit the needs of a growing economy and an industry that has
advanced technologies.

1 Marine
Insurance Act 1906, s18 (1)

2 Consumer
Insurance (Disclosure and Represenatations) Act 2012, s1(a)

3 HL Deb 339 

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