Under new rules planned by the Government, fewer insurance claims should be rejected because people have failed to give their provider all the required information.
The current consumer insurance law states that it is the responsibility of individuals to volunteer information on everything an insurer might consider relevant to the policy they are taking out.
Under the planned changes, insurers are entitled with the task of asking all the necessary questions to obtain the needed information.
Since accidents are very common on UK's roads, the move is sure to benefit motorists wanting to make car insurance claims.
The scheme is intended to help consumers from having their valid claims turned down if they have unintentionally given the wrong information.
However, people who deliberately mislead insurers will still have their claims rejected.
The Law Commission had previously estimated that if the legislation was passed, it would mean that insurers could pay out £4.4 million more for life claims, and between £5 million and £20 million more for other policies.
But the Association of British Insurers (ABI) said the new proposals, which take into account work that the industry is already doing, would not be so expensive.
Nick Starling, director of general insurance and health at the ABI, said: "The insurance industry is committed to ensuring that customers understand their rights and obligations, and have their genuine claims paid quickly."
Copyright Press Association 2011