1An insurer is responsible for producing, and an insurance intermediary for providing to a customer, the information required by this chapter and by the distance communication rules (see ICOBS 3.1). However, an insurer is responsible for providing information required on mid-term changes, and an insurance intermediary is responsible for producing price information if it agrees this with an insurer.

1If there is no insurance intermediary, the insurer is responsible for producing and providing the information.

1An insurer must produce information in good time to enable the insurance intermediary to comply with the rules in this chapter, or promptly on an insurance intermediary's request.

1These general rules on the responsibilities of insurers and insurance intermediaries are modified by ICOBS 6 Annex 1 if one of the firms is not based in the United Kingdom, and in certain other situations.

1The IPID must be drawn up by the manufacturer of the policy.

[Note: article 20(6) of the IDD]

1. (1)

   A firm must ensure that a customer is given appropriate information about a policy in good time and in a comprehensible form so that the customer can make an informed decision about the arrangements proposed.6

2. (2)

   The information must be provided to the customer: 6

   1. (a)

      whether or not a personal recommendation is given; and6

   2. (b)

      irrespective of whether a policy is offered as part of a package with:6

      1. (i)

         a non-insurance product or service (seeICOBS 6A.3 (Cross-selling)); or6

      2. (ii)

         another policy. 6

3. (3)

   Appropriate information is both objective and relevant information, and includes IPID information.6

4. (4)

   Where the firm is proposing a policy (including if appropriate on renewal) ‘in good time’ means in good time prior to the conclusion of the policy.6

[Note: articles 20(1) first paragraph and 20(4) of the IDD]6

6A firm must ensure that the level of appropriate information provided takes into account the complexity of the policy and the type of customer.

[Note: article 20(4) of the IDD]

6A firm, when dealing with a consumer must provide the IPID information by way of an IPID for each policy (other than a pure protection contract).

[Note: articles 20(4) and 20(5) of the IDD]

1. (1)

   If a policy is bought by a consumer in connection with other goods or services a firm must, before conclusion of the contract, disclose its premium separately from any other prices and whether buying the policy is compulsory.

2. (2)

   In the case of a distance contract, disclosure of whether buying the policy is compulsory may be made in accordance with the timing requirements under the distance communication rules (see ICOBS 3.1.8 R, ICOBS 3.1.14 R and ICOBS 3.1.15 R).

3. (3)

   2This rule does not apply to policies bought in connection with other goods or services provided as part of a packaged bank account.

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 Area2 must inform a customer, before any commitment is entered into, of the state2 in which the head office or, where appropriate, the branch with which the contract is to be concluded, is situated.

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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 Area2 must ensure that the contract or any other document granting cover, together with the insurance proposal where it is binding upon the customer, states1 the address of the head office, or, where appropriate, of the branch of the firm1 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)

   3A 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.

A firm must keep a customer informed throughout the term of a pure protection contract of any change concerning1 the policy conditions, both general and special, and any change in the following information:1

1. (1)

   the name of thefirm,1 its legal form or the address of its head office and, where appropriate, of the agency or branch1 which concluded the contract; and

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2. (2)

   all the information marked ‘*’ in the table of information to be communicated before conclusion, in the event of a change in the policy conditions or amendment of the law applicable to the contract.

1When a firm provides a customer with information in accordance with ICOBS 6.3.3 R, it must provide it in a clear and accurate manner, in writing, in an official language of the State of the commitment, or in another language if the policyholder so requests and the law of the State of the commitment so permits or the policyholder is free to choose the law applicable.

[Note: article 185(3), (5) and (6) of the Solvency II Directive]

This section applies in relation to a payment protection contract or a pure protection contract except as otherwise stated.

1. (1)

   If a firm provides information orally during a sales dialogue with a customer on a main characteristic of a policy, it must do so for all the policy's main characteristics.

2. (2)

   A firm must take reasonable steps to ensure that the information provided orally is sufficient to enable the customer to take an informed decision on the basis of that information, without overloading the customer or obscuring other parts of the information.

A firm must provide a consumer with a policy summary in good time before the conclusion of a pure protection contract2.

2In relation to a payment protection contract, a firm must provide a consumer with information about:

1. (1)

   how the consumer can complain to the insurance undertaking and that complaints may subsequently be referred to the Financial Ombudsman Service (or other applicable named complaints scheme); and

2. (2)

   the consumer’s entitlement to compensation from the compensation scheme (or other applicable compensation scheme), or that there is no compensation scheme, in the event where the insurance undertaking is unable to meet its liabilities;

in good time before the conclusion of the policy.

1. (1)

   A firm must draw a consumer's attention to the importance of reading payment protection contract documentation before the end of the cancellation period to check that the policy is suitable for the consumer.

2. (2)

   This must be done orally if a firm provides information orally on any main characteristic of a policy.

A firm must provide price information in a way calculated to enable the customer to relate it to a regular budget.

1. (1)

   This rule applies when a premium will be paid using a credit agreement other than a revolving credit agreement.

2. (2)

   A firm must provide price information in a way calculated to enable the customer to understand the additional repayments that relate to the purchase of the policy, and the total cost of the policy.

3. (3)

   Price information must reflect any difference between the duration of the policy and that of the credit agreement.

4. (4)

   A firm must explain to a customer, as applicable, that the premium will be added to the amount provided under the credit agreement and that interest will be payable on it.

1. (1)

   Throughout the term of a policy, a firm must provide a customer with information about any change to:

   1. (a)

      the premium, unless the change conforms to a previously disclosed formula; and

   2. (b)

      any term of the policy, together with an explanation of any implications of the change where necessary.

2. (2)

   This information must be provided in writing or another durable medium in good time before the change takes effect or, if the change is at the customer's request, as soon as is practicable provided the firm explains the implications of the change before it takes effect.

1. (1)

   1This section applies when a firm proposes to a consumer the renewal of a general insurance contract, which is not a group policy, and which has a duration of 10 months or more.

2. (2)

   In this section, ‘renewal’ means carrying forward a policy, at the point of expiry and as a successive or separate operation of the same nature and duration as the policy, with the same insurance intermediary or the same insurer.

3. (3)

   The firm must provide to the consumer the following information in good time before the renewal:

   1. (a)

      the premium to be paid by the consumer on renewal;

   2. (b)

      in a way that is consistent with the presentation of (a) so that they can be easily compared:

      1. (i)

         except where (ii) applies, the premium for the policy which the firm proposes to renew, as set out at the inception of that policy;

      2. (ii)

         where one or more mid-term changes were made to the policy which the firm proposes to renew, an amount calculated by annualising (or otherwise adjusting as appropriate to the duration of the proposed policy) the premium in effect following the most recent mid-term change, excluding all fees or charges associated with those mid-term changes;

   3. (c)

      a statement alongside (a) and (b) indicating that the consumer:

      1. (i)

         should check that the level of cover offered by the renewal is appropriate for their needs; and

      2. (ii)

         is able, if they so wish, to compare the prices and levels of cover offered by alternative providers4; and

   4. (d)

      a statement informing the consumer whether the contract will automatically renew or whether the consumer needs to take action to accept the renewal offer.

4. (4)

   Where the proposed renewal will be the fourth or subsequent renewal the consumer has entered into in respect of the policy, the firm must include the following statement, to appear alongside the matters required by (3)(a), (b) and (c)(i) (but omitting (c)(ii)): “You have been with us a number of years. You may be able to get the insurance cover you want at a better price if you shop around.”

5. (5)

   The firm must communicate the information in (3) and (4):

   1. (a)

      clearly and accurately;

   2. (b)

      in writing or another durable medium; and

   3. (c)

      in a way that is accessible and which draws the consumer’s attention to it as key information.

1The information in ICOBS 6, unless modified in this chapter, must be given in accordance with ICOBS 4.1A (Means of communication to customers).

[Note: article 23(1) of the IDD]