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Bifurcated Substantive and Legislatively-Technical Understanding of the Differences in the UK Statutory “Consumer” Definitions Applicable to Insurance Cover

Bifurcated Substantive and Legislatively-Technical Understanding of the Differences in the UK Statutory “Consumer” Definitions Applicable to Insurance

By: Yong Han  
Open Access
|Jun 2023

Abstract

This paper explains why the two UK statutory definitions of “consumer(s)” are so markedly different in the two strands of relevant statutes applicable to insurance. The basic difference between them is that by the narrow definition an insurance consumer can only be an individual whereas by the broad definition it can be either an individual or a firm, and there are other nuanced differences. This basic difference has begged questions about the protection of financial/insurance consumers. The first reason of such a marked difference is that, as a matter of legislative technique and practice in common law countries, the validity and applicability of its statutory legal definition of a terminology in one particular statute is intended to be limited only to that statute and not extendable by default to the same terminology in other statutes. The second and far more important substantive reason is the actual bifurcation of financial consumer protection practically into the judicial approach and the regulatory approach thereto. Consistent with such bifurcation, the narrow and the broad consumer definitions respectively but non-exclusively serve or match the markedly different judicial approach and the regulatory approach to financial/insurance consumer protection.

DOI: https://doi.org/10.36544/irfc.2023.8-1.5 | Journal eISSN: 2508-464X | Journal ISSN: 2508-3155
Language: English
Page range: 69 - 89
Submitted on: Oct 30, 2022
Accepted on: Mar 19, 2023
Published on: Jun 30, 2023
Published by: International Academy of Financial Consumers
In partnership with: Paradigm Publishing Services

© 2023 Yong Han, published by International Academy of Financial Consumers
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.