LLD 6.1 Enabling provision, application and purpose

Enabling provision and application

LLD 6.1.1 G 01/12/2004

The insurance market direction in this chapter is given under section 316(1) of the Act (Direction by Authority) and applies to members.

LLD 6.1.2 G 01/12/2004

The insurance market direction given in this chapter is intended to protect the interests of policyholders and potential policyholders by:

(1)
making members subject to the Compulsory Jurisdiction of the Financial Ombudsman Service with respect to the carrying on of insurance business; and
(2)
enabling the complaints of policyholders who are eligible complainants to be dealt with under the rules of the Financial Ombudsman Service.

LLD 6.2.1 D 01/12/2004

(1)
With effect from commencement, Part XVI of the Act (The Ombudsman Scheme), and in particular section 226 (Compulsory jurisdiction), applies to the carrying on of insurance business by members.
(2)
For the purposes of (1) 'insurance business' means the regulated activities of effecting or carrying out contracts of insurance written at Lloyd's.

LLD 6.2.2 G 01/12/2004

Part XVI (The Ombudsman Scheme) is a core provision mentioned in section 317(1) of the Act (The core provisions).

LLD 6.2.3 G 01/12/2004

Section 317(2) of the Act (The core provisions) provides that references in an applied core provision to an authorised person are to be read as references to a person in the class to which the insurance market direction applies. The effect of this, and of the insurance market direction set out at LLD 6.2.1 D, is that Part XVI of the Act (The Ombudsman Scheme), and in particular section 226 (Compulsory jurisdiction), apply also to members.

LLD 6.2.4 G 01/12/2004

Guidance on the jurisdiction of the Financial Ombudsman Service in relation to members is given in DISP 2.5.3 G. The handling of a policyholder complaint against a member is covered in DISP 1.7.1 R and DISP 1.7.2 R.