The Deregulation Act 2015 came into force on the 30th June 2015. It’s a change that’s being made as part of the Government’s commitment to challenge ‘red tape’. One part of this act is to simplify some of the regulatory processes for insurers and policyholders.
What this means for us?
- We’ll no longer need to ask you to collect or return certificates to confirm a cancellation
- Cancellation effective date will be deemed the date the MID is updated
- Our cancellation wording will reflect the changes that The Deregulation Act brings
- Our legal obligation to pay a third party claim after cancellation will cease from the date a cancellation record is added to the MID, which at the moment exists until the certificate is surrendered.
- The MIB will take on the cost of claims which fall outside of insurer liability, which ends when the cancellation is noted on the MID.
What’s the impact for you, our brokers?
- Certificates no longer need to be returned when a policy is cancelled.
- It’s imperative that you inform us of any cancellations as soon as you are notified in order for us to update the MID. The MID record will be proof of cancellation going forward.
- Late notification of cancellations could mean we are still liable for third party claims which in turn could impact a policyholder’s future premiums.
Whilst this change affects long standing practices in the insurance industry, it reduces the administration required to cancel a policy and exposure to third party claims.
We continually monitor our MID performance working alongside our brokers to ensure accuracy and that updates are made in timely fashion.
For more information about deregulation, click the link below.
Thanks for your continued support.
Categories: Commercial Lines