26. (1) Without prejudice to the remedies provided for in section 9 and section 18, and subject to subsection (2), a court of competent jurisdiction may in its discretion—

(a) where a consumer is in breach of any duties under this Act (other than those to which section 9 and section 18 apply) order that the sum otherwise recoverable in a claim under a contract of insurance shall be reduced in proportion to the breach involved, or

(b) where an insurer is in breach of any duties under this Act (other than those to which section 9 and section 18 apply) order that the sum otherwise payable in a claim under a contract of insurance shall be increased in proportion to the breach involved.

(2) Where there has been a breach by the consumer or, as the case may be, by the insured of any duty under this Act, the court may decline to make any order under subsection (1) where—

(a) the breach of the duty was not deliberate, and

(b) it would be just and equitable in the circumstances to dispense with compliance with the duty for the purposes of subsection (1).

(3) A term or condition of a contract of insurance is void if it purports to impose on the consumer the burden of proving that the insurer has complied or not complied with an obligation imposed on the insurer in accordance with this Act (including those to which section 9 and section 18 apply).

(4) The power under subsection (1)(b) shall not be exercised to an extent that such exercise would have the result that the total sum payable in respect of the claim concerned exceeds the monetary amount which, in the proceedings, the court would have jurisdiction to award.