Part 5: Late Payment of Insurance Claims Section 30: Additional time limit for actions for damages for late payment of insurance claims
Section 30 inserts a new section 5A into the Limitation Act 1980. The Limitation Act 1980, and the amendments made to it by section 30, extend to England and Wales only.
	Subsection (1) of the new section means that, where the insurer has paid all sums due in respect of an insurance claim under the contract, then the insured may not bring any claim for late payment of those sums more than one year after that payment.
	Subsection (2) provides that the receipt of any form of payment which extinguishes the insurer’s liability in respect of the original insurance claim will constitute the beginning of the one year period for bringing a late payment claim specified in subsection (1). This payment may be, for example, a payment in accordance with a court or arbitral award, or an amount agreed by the insurer and insured in a binding settlement agreement.
	A late payment action will be barred by the expiry of whichever period ends soonest: the one year period after payment of all sums due in respect of the insurance claim, or the usual limitation period (contained in section 5 of the Limitation Act 1980 – time limit for actions founded on simple contract) of six years from the date of breach of the implied term as to payment within a reasonable time.
	This provision extends to England and Wales only.