ICOBS 6.2 Pre-contract information: general insurance contracts

This section applies in relation to a general insurance contract.

Before a general insurance contract is concluded, a firm must inform a customer who is a natural person of:

1. (1)

   the law applicable to the contract where the parties do not have a free choice, or the fact that the parties are free to choose the law applicable and, in the latter case, the law the firm proposes to choose; and

2. (2)

   the arrangements for handling policyholders’ complaints concerning contracts including, where appropriate, the existence of a complaints body (usually the Financial Ombudsman Service), without prejudice to the policyholders’ right to take legal proceedings.

1. (1)

   A firm which has its head office in the European Economic Area must inform a customer, before any commitment is entered into, of the state in which the head office or, where appropriate, the branch with which the contract is to be concluded, is situated.

2. (2)

   Any documents issued to the customer must convey the information required by this rule.

A firm which has its head office in the European Economic Area must ensure that the contract or any other document granting cover, together with the insurance proposal where it is binding upon the customer, states the address of the head office, or, where appropriate, of the branch of the firm which grants the cover.

1. (1)

   A firm must provide a consumer with information on the right to cancel a policy.

2. (2)

   The information to be provided on the right to cancel is:

   1. (a)

      its existence;

   2. (b)

      its duration;

   3. (c)

      the conditions for exercising it;

   4. (d)

      information on the amount which the consumer may be required to pay if he exercises it;

   5. (e)

      the consequences of not exercising it; and

   6. (f)

      the practical instructions for exercising it.

3. (3)

   The information must be provided in good time before conclusion of the contract and in writing or another durable medium.

1. (1)

   A firm must:

   1. (a)

      inform a consumer whether the terms and conditions of their policy provide for the policy to automatically renew at the end of the term;

   2. (b)

      provide the consumer with an explanation of the effect of automatic renewal for them; and

   3. (c)

      provide the consumer with information on the right to cancel the automatic renewal element of the policy at any time.

2. (2)

   The information on the right to cancel the automatic renewal element must include:

   1. (a)

      the existence of the right;

   2. (b)

      the conditions for exercising it;

   3. (c)

      the consequences of exercising it; and

   4. (d)

      the practical instructions for exercising it.

3. (3)

   The information in (1) and (2) must be provided:

   1. (a)

      in good time before conclusion of the contract; and

   2. (b)

      in writing or in another durable medium.

4. (4)

   Paragraphs (1) to (3) do not apply in the case of a contract for private health or medical insurance, or pet insurance.