In the light of the decision in Bankers Insurance Co Ldt v South Essay

In the light of the decision in Bankers Insurance Co Ldt v South (2003) EWHC 380, consider to what extent exclusion clauses in hooliday insurance contracts shou - Essay Example It is the high time to review whether these exclusion clauses are logical and whether the existing regulations are satisfactory, if not what additional regulations are needed in this regard. It requires the regulation of holiday insurance act considering the experience of policy holders in different contexts. However if one analyzes the definition of exclusion clauses, it would be revealed that the legal system has provided several safeguards for the consumers if they are interpreted accurately. Exclusion clause may be defined as a clause which may be inserted into a contract which aims to exclude or limit one partys liability for breach of contract or negligence. However, the party may only rely on such a clause if (a) it has been incorporated into the contract, and if, (b) as a matter of interpretation, it extends to the loss in question. Its validity will then be tested under (c) the Unfair Contract Terms Act 1977 and (d) the Unfair Terms in Consumer Contracts Regulations 1999. This clearly implies that the incorporation of exclusion clause must must not violate the Unfair contract terms act 1977, otherwise its validity will not be considered. Hence the consumers must try to be in full possession of insurance exclusion clause details and attitude history of insurance company in case the problem arises due to exclusion clauses. In the context of recent judgment in bankers insurance company V Patrick South and Ian Gardener, the efficiency of unfair contract terms act 1977, unfair terms in consumer contracts regulations act 1999 and other related acts as far as the accurate interpretation of exclusion clauses has to be discussed. This judgment exposed several drawbacks that are still existing in the present holiday insurance act. Hence the present paper discusses the status of present regulations, inclusion of additional regulations for guaranteeing the fairness in protection of interests of policy holders in the context of above mentioned case. The review