Consumers will find it easier to make claims against their insurance policies, if proposals put forward by the Law Commission are followed up.

The commission wants to amend a law based on the Marine Insurance Act of 1906, which allows insurance companies to refuse claims if consumers unwittingly or mistakenly provide erroneous data with their disclosure forms.

If a customer makes an incorrect statement of a "fact that is material" - or fails to provide details that would otherwise affect risk assessment - insurers are allowed to refuse to pay a claim, under the century-old law.

"This law dates from a time when private insurance as we know it now was the preserve of the wealthy few," David Hertzel, the commission member leading the project, commented.

"Today the insurance industry is a huge business with new mass market products and an integral part of our personal lives."

The Association of British Insurers has rejected the changes saying: "More law is unlikely to provide a better deal for consumers. We are doing a lot already to improve confidence among customers."