Consumer Insurance Contracts Act 2019 Summary: What You Need to Know
The Consumer Insurance Contracts Act 2019 is a significant piece of legislation that aims to protect consumers from unfair terms in insurance policies. The Act which came into force in the UK on 1st October 2019, applies to all non-commercial insurance contracts concluded after that date.
This new law includes important measures that put the emphasis on ensuring consumers have access to clear and comprehensive information and the right to challenge unfair terms and conditions. Here are some of the key provisions of the Act:
1. Duty of Insurers to Provide Pre-Contractual Information
The Act imposes a specific duty on insurers to provide potential policyholders with clear and comprehensive information about the insurance policy. This information must include the terms and conditions, the premium, the policy limit, and any exclusions or limitations.
2. Ban on Unfair Terms
The Consumer Insurance Contracts Act 2019 bans several unfair terms in insurance policies. These include terms that allow insurers to void policies for non-disclosure of information when the consumer could not have reasonably known of the information sought, and terms that give insurers complete discretion over the price paid by the consumer.
3. The Right to Challenge Unfair Terms
The Act gives consumers the right to challenge any unfair terms in an insurance policy. This can be done through measures such as court action, complaints to the Financial Ombudsman Service, or through alternative dispute resolution procedures.
4. Changes to Renewal Notices
The Consumer Insurance Contracts Act 2019 has also introduced changes to renewal notices. Insurers are now required to provide clear and concise renewal notices, including details of any changes to the policy and the premium. Insurers must also provide details of any alternative products available.
5. Cooling-off Period
The Act provides consumers with a 14-day cooling-off period during which they can cancel the insurance policy without penalty. Insurers must provide clear and concise information on the right to cancel, the period during which the right applies, and the procedure for cancelling.
In Conclusion
The Consumer Insurance Contracts Act 2019 is a significant milestone in consumer protection in the insurance industry. It ensures that consumers have access to clear and comprehensive information and the right to challenge any unfair terms in an insurance policy. If you have any concerns about your insurance policy, you should seek advice from a qualified insurance professional or consumer advocacy group.