A new report from the Law Reform Commission says some of our insurance legislation is more than 200 years out of date.

Some of our laws in this area date back to the 18th century, and the commission said Ireland is lagging behind most developed countries.

The report says insurers often use these antiquated laws to avoid making pay-outs.

Raymond Byrne of the Law Reform Commission said an insurer can legally refuse to pay out on a claim if a customer mistakenly leaves out information on their application.

"If there's a mistake made by the consumer, there shouldn't be this drastic right of the company to completely repudiate," he said.

"Yes, if important information has been left out, the insurance company … shouldn't have to pay out everything that was committed under the insurance policy, but maybe a lesser amount should be paid out."

He said currently the amount payable went down to zero automatically, even over minor mistakes that do not affect the particular claim a customer is making.