Legislation – Enterprise Act 2016

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Introduction

PART 1
The Small Business Commissioner

1 Small Business Commissioner

2 Small businesses in relation to which the Commissioner has functions

3 General advice and information

4 The SBC complaints scheme

5 Enquiry into, consideration and determination of complaints

6 Reports on complaints

7 Scheme regulations

8 Confidentiality

9 Annual report

10 Review of Commissioner’s performance

11 Power to abolish the Commissioner

12 Regulations under section 11: procedure

13 Definitions used in Part 1

PART 2
Regulators

14 Extension of target to provisions made by regulators

15 Duty to report on effect of regulators’ code

16 Duty to report on effect of economic growth duty

17 Power of Welsh Ministers to apply regulators’ principles and code of practice

18 Removal of restrictions

19 Secondary legislation: duty to review

PART 3
Regulatory Enforcement and Sanctions Act 2008

20 Extending the primary authority scheme

21 Devolved Welsh matters

PART 4
Apprenticeships

22 The Institute for Apprenticeships

23 The Institute for Apprenticeships: transitional provision

24 Public sector apprenticeship targets

25 Only statutory apprenticeships to be described as apprenticeships

26 Apprenticeships: information sharing

27 Apprenticeship funding

PART 5
Late payment of insurance claims

28 Insurance contracts: implied term about payment of claims

29 Contracting out of the implied term about payment of claims

30 Additional time limit for actions for damages for late payment of insurance claims

PART 6
Non-domestic rating

31 Disclosure of HMRC information in connection with non-domestic rating

32 Alteration of non-domestic rating lists

PART 7
Sunday working

33 Sunday working

PART 8
Other enterprise-related provisions

34 Allowable assistance under Industrial Development Act 1982

35 Grants towards electronic communications services and networks

36 UK Government Investments Limited

37 Disposal of Crown’s shares in UK Green Investment Bank company

38 UK Green Investment Bank: transitional provision

39 Market rent only option: rent assessments etc

40 Reports on avoidance

PART 9
Public sector employment: restrictions on exit payments

41 Restriction on public sector exit payments

PART 10
General provisions

42 Consequential amendments, repeals and revocations

43 Transitional, transitory or saving provision

44 Commencement

45 Extent

46 Short title

SCHEDULES

SCHEDULE 1 The Small Business Commissioner

SCHEDULE 2 Business impact target: consequential and related amendments

SCHEDULE 3 Primary authority scheme: new Schedule 4A to RESA 2008

SCHEDULE 4 The Institute for Apprenticeships

SCHEDULE 5 Sunday working

SCHEDULE 6 Restriction on public sector exit payments: consequential and related provision

Changes to legislation:

There are currently no known outstanding effects for the Enterprise Act 2016,
PART 5
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Changes to Legislation

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PART 5Late payment of insurance claims

28Insurance contracts: implied term about payment of claims

(1)

After section 13 of the Insurance Act 2015 (remedies for fraudulent claims: group insurance) insert—

“PART 4ALate payment of claims

13AImplied term about payment of claims

(1)

It is an implied term of every contract of insurance that if the insured makes a claim under the contract, the insurer must pay any sums due in respect of the claim within a reasonable time.

(2)

A reasonable time includes a reasonable time to investigate and assess the claim.

(3)

What is reasonable will depend on all the relevant circumstances, but the following are examples of things which may need to be taken into account—

(a)

the type of insurance,

(b)

the size and complexity of the claim,

(c)

compliance with any relevant statutory or regulatory rules or guidance,

(d)

factors outside the insurer’s control.

(4)

If the insurer shows that there were reasonable grounds for disputing the claim (whether as to the amount of any sum payable, or as to whether anything at all is payable)—

(a)

the insurer does not breach the term implied by subsection (1) merely by failing to pay the claim (or the affected part of it) while the dispute is continuing, but

(b)

the conduct of the insurer in handling the claim may be a relevant factor in deciding whether that term was breached and, if so, when.

(5)

Remedies (for example, damages) available for breach of the term implied by subsection (1) are in addition to and distinct from—

(a)

any right to enforce payment of the sums due, and

(b)

any right to interest on those sums (whether under the contract, under another enactment, at the court’s discretion or otherwise).”

(2)

In section 22 of that Act (application etc of Parts 2 to 5), after subsection (3) insert—

“(3A)

Part 4A applies only in relation to contracts of insurance entered into after that Part has come into force, and variations to such contracts.”

29Contracting out of the implied term about payment of claims

(1)

After section 16 of the Insurance Act 2015 (contracting out: non-consumer contracts) insert—

“16AContracting out of the implied term about payment of claims: consumer and non-consumer insurance contracts

(1)

A term of a consumer insurance contract, or of any other contract, which would put the consumer in a worse position as respects any of the matters provided for in section 13A than the consumer would be in by virtue of the provisions of that section (so far as relating to consumer insurance contracts) is to that extent of no effect.

(2)

A term of a non-consumer insurance contract, or of any other contract, which would put the insured in a worse position as respects deliberate or reckless breaches of the term implied by section 13A than the insured would be in by virtue of that section is to that extent of no effect.

(3)

For the purposes of subsection (2) a breach is deliberate or reckless if the insurer—

(a)

knew that it was in breach, or

(b)

did not care whether or not it was in breach.

(4)

A term of a non-consumer insurance contract, or of any other contract, which would put the insured in a worse position as respects any of the other matters provided for in section 13A than the insured would be in by virtue of the provisions of that section (so far as relating to non-consumer insurance contracts) is to that extent of no effect, unless the requirements of section 17 have been satisfied in relation to the term.

(5)

In this section references to a contract include a variation.

(6)

This section does not apply in relation to a contract for the settlement of a claim arising under an insurance contract.”

(2)

In section 17(1) of that Act (the transparency requirements), after “16(2)” insert “
or 16A(4)
”.

30Additional time limit for actions for damages for late payment of insurance claims

After section 5 of the Limitation Act 1980 insert—

“5AAdditional time limit for actions for damages for late payment of insurance claims

(1)

An action in respect of breach of the term implied into a contract of insurance by section 13A of the Insurance Act 2015 (late payment of claims) may not be brought after the expiration of one year from the date on which the insurer has paid all the sums referred to in subsection (1) of that section.

(2)

Any payment which extinguishes an insurer’s liability to pay a sum referred to in section 13A of the Insurance Act 2015 is to be treated for the purposes of this section as payment of that sum.”