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U.K. risk management association welcomes Marine Insurance Act update

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U.K. risk management association Airmic Ltd. has welcomed the U.K. Parliament's approval of a bill that will reform a century-old insurance law.

The House of Commons on Tuesday unanimously passed the Insurance Bill that will update the Marine Insurance Act 1906.

The bill must now receive the approval of the Queen before being enacted in 2016.

Airmic had campaigned for reform of the Marine Insurance Act which, among other things, enables insurers to avoid paying claims if there were inaccuracies or nondisclosure in a buyer's insurance submission even when those inaccuracies had no relevance to the claim in question.

“We are delighted to see this important bill complete its passage through Parliament. The changes bring this country's insurance contract law for commercial insurance up-to-date and fit for the modern world,” John Hurrell, CEO of London-based Airmic, said in a statement.

“This will not only benefit insurance buyers but will also boost the competitiveness of the U.K. insurance market as a whole,” he added.