Are your insurance cancellation terms clear?
BISL Ltd, a car and motorbike insurer, has given an undertaking relating to the cancellation terms in its insurance policies, after the Financial Services Authority — now the Financial Conduct Authority — found the terms to be unfair.
The offending term concerned how BISL would calculate refunds if a policyholder cancelled his or her policy, and the situations in which BISL could cancel a policy and keep the premium. The term read: ‘Thereafter refunds will only be given if no incident has occurred that has led to a claim, or may yet lead to a claim against the policy and calculated as follows. If you or we cancel within 12 months of the policy start date, we will calculate the premium for the period of cover based on our short period rates in force when we receive the Certificate of Motor Insurance and refund any excess premium you have paid.’
Under Regulation 5 of the Unfair Terms in Consumer Contracts Regulations 1999, terms are regarded as unfair if, contrary to the requirement of good faith, they cause a significant imbalance in the parties’ rights and obligations under the contract, which harms the consumer…
If you are registered and logged in to the site, click on the link below to read the rest of the Walker Morris briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Walker Morris
News from The Lawyer
Briefings from Walker Morris
What’s coming up: the major cases, government policy changes, and litigation and dispute resolution legislation to look out for in 2015
We know that it is important for businesses to be aware of upcoming legal and regulatory changes, so that they can plan ahead. View Walker Morris’s summary of some of the key upcoming decisions in major cases, changes to government policy and forthcoming legislation relating to litigation and dispute resolution in an easy-to-use table by clicking the link below: http://www.walkermorris.co.uk/whats-coming
The answer is yes, if they were not created as part of a genuine attempt to settle an existing dispute.
Analysis from The Lawyer
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all
The law school war shows no signs of ending. But we have, perhaps, reached the end of the beginning.