Inregards to a consumer assured, the 1906 Act was totally inappropriate and wasonerous to consumers. This is because the 1906 Act expects a consumer insuredto disclose what is known to him and is deemed to know in the ordinary courseof the business1when in reality a consumer assured is anindividual who enters into the contract wholly or mainly for purposes unrelatedto the individual’s trade, business or profession.2Hence, applying the 1906 Act to consumer insureds would be rather unreasonable.
In 1957, the report submitted by the Law Reform Committee identified the flawsin the 1906 Act but sadly it was not supported by the governemnts then. Thefact that the governemnts over the years had done nothing to reform the 1906Act portrayed an image that reforming the Act was unnecessary in the practicalworld of the insurance industry.3 TheCIDRA 2012 is the result of the development of the law. The law has beenreformed to fit the needs of a growing economy and an industry that hasadvanced technologies. 1 MarineInsurance Act 1906, s18 (1)2 ConsumerInsurance (Disclosure and Represenatations) Act 2012, s1(a)3 HL Deb 339