ICOBS 7.1 The right to cancel

1A consumer has a right to cancel, without penalty and without giving any reason, within:

1. (1)

   30 days for a contract of insurance which is, or has elements of, a pure protection contract or payment protection contract; or

2. (2)

   14 days for any other contract of insurance or distance contract.

The right to cancel does not apply to:

1. (1)

   a travel and baggage policy or similar short-term policy of less than one month's duration;

2. (2)

   a policy the performance of which has been fully completed by both parties at the consumer's express request before the consumer exercises his right to cancel;

3. (3)

   a pure protection contract of six months’ duration or less which is not a distance contract;

4. (4)

   a pure protection contract effected by the trustees of an occupational pension scheme, an employer or a partnership to secure benefits for the employees or the partners in the partnership;

5. (5)

   a general insurance contract which is neither a distance contract nor a payment protection contract, sold by an intermediary who is an unauthorised person (other than an appointed representative); and

6. (6)

   a connected contract which is not a distance contract.

The cancellation period begins either:

1. (1)

   from the day of the conclusion of the contract, except in respect of a pure protection contract where the time limit begins when the customer is informed that the contract has been concluded; or

2. (2)

   from the day on which the consumer receives the contractual terms and conditions and any other pre-contractual information required under this sourcebook, if that is later than the date referred to above.

If a consumer exercises the right to cancel he must, before the expiry of the relevant deadline, notify this following the practical instructions given to him. The deadline shall be deemed to have been observed if the notification, if on paper or another durable medium, is dispatched before the deadline expires.