July 16 (Reuters) - Britain's Treasury will announce legal reforms as early as Thursday that will make it harder for insurers to avoid paying legitimate claims from business customers, the Financial Times reported.
The new rules have been recommended by Britain's Law Commission, which had previously described the legal framework around insurance cover as "harsh", the FT said.
However, some contentious measures recommended by the commission will be excluded from the proposals, the paper said on its website, citing people familiar with the matter. (on.ft.com/1ysdS6r)
The clauses the Treasury will not put forward are one that would have entitled policyholders to damages when insurers delay payouts, and another that would have curbed insurers' ability to reject claims by arguing policyholders breached their terms and conditions, the FT said.
It said some insurers had complained that these measures were "unnecessary" and risked pushing up premium rates.
A spokeswoman told Reuters the Treasury could not comment on details of legislation that had not yet been introduced to parliament. (Reporting by Richa Naidu in Bangalore; Editing by James Dalgleish)