http://www.legislation.gov.uk/ukpga/2016/12/section/28/enactedEnterprise Act 2016enKing's Printer of Acts of Parliament2016-07-05 PART 5 28 1 After section 13 of the Insurance Act 2015 (remedies for fraudulent claims: group insurance) insert— PART 4A 13A 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.