TERMS OF BUSINESS
For your own benefit and protection, you should read these terms carefully. If you are unsure about any aspect of our Terms of Business or have any questions regarding our relationship with you, please contact us at the above address.
Registered address: Unit 45, Block 5, Northwood Court, Santry, Dublin 9, D09 H578. Registered number: 623383
Principal Insurance Ireland Designated Activity Company (DAC) trading as Principal Insurance is regulated by the Central Bank of Ireland as an insurance intermediary registered under the European Union (Insurance Distribution) Regulations 2018 (Reference:C191027).
These Terms of Business (“Terms”) outline the basis on which we provide regulated financial services to our clients. Please ensure that you read this document. These Terms apply to all transactions undertaken for you or services provided to you and will remain in force until further notice. Should we make any material changes to our Terms, we will advise you in advance of providing any further services to you.
Principal Insurance Ireland Designated Activity Company (DAC) is subject to the Central Bank of Ireland’s Consumer Protection Code, Minimum Competency Code and Fitness and Probity Standards. These Codes offer protection to consumers and can be found on the Central Bank website at www.centralbank.ie.
2. OUR SERVICE TO YOU.
We will act as an insurance intermediary to arrange and administer contracts of insurance on Your instructions. As a credit intermediary, We can also arrange personal loans, e.g. premium finance.
Fair and Personal Analysis
We will normally offer advice on a fair and personal analysis basis in relation to car, van, and home insurance products. This means We will research the marketplace, products and providers and recommend the best product to suit Your needs. This research is on the basis of a sufficiently large number of products and providers available, in accordance with professional criteria, regarding which contract would be suitable to meet Your needs. We will identify, select and recommend a suitable product provider and on receipt of Your instructions, We will transmit orders on Your behalf to one or more product providers (a list of which is available on request).
Where Our service differs to this, because We do not give You advice about the insurance products offered (in which case You are responsible for ensuring that it is suitable for You), We will advise You accordingly.
When You seek motorcycle insurance, cover will only be offered from a single insurer with whom We hold a binding authority. The Motorcycle policy is underwritten by AXA Insurance DAC. The policy also includes cover for Motor Legal Expenses which is underwritten by MIS Underwriting Ltd on behalf of AmTrust International Underwriters DAC, and Motorcycle Breakdown Assistance which is underwritten by AXA Assistance (Ireland) Limited on behalf of Inter Partner Assistance SA.
We will provide You with details of the cover effected on Your behalf, including the insurer(s) who are underwriting the risk, and will clarify the scope of the advice given and explain the reasons. This will be provided in a durable medium (which includes email, unless You tell Us otherwise). We will provide You with evidence of cover and all relevant documentation promptly after inception of a policy.
Although Our letter/ report will set out key aspects of the cover, this is not intended to be a substitute to the insurer(s) policy wording, which will take precedence in setting out the terms of the cover. We will use Our best endeavours to place cover on Your behalf, but We do not guarantee to be able to do so.
While We take care to ensure that the information contained on Our website is accurate and up to date, We give You no promises, representations or warranties about the accuracy, completeness, reliability or suitability of any information on Our website.
Where We offer an instalment facility to You in order to pay Your insurance premium by regular instalments, We do not offer advice in relation to this. We only act as a credit broker when arranging instalment facilities on Your behalf, and not as a lender.
We aim to treat You fairly and to meet the following outcomes in all Our dealings with You:
3. CONFLICTS OF INTEREST.
We are committed to providing a professional standard of service to Our clients, and accordingly We endeavour to manage any conflicts of interest that may arise. However, where a conflict situation occurs, We will advise You of this in writing and request Your written acknowledgment that You are aware of the conflict of interest and still want to proceed.
We have a written policy which sets out the steps that We take to ensure that We avoid or, where this is not possible, mitigate conflicts of interest that may arise in providing services to You. These steps include administrative and organisational arrangements appropriate to the size, nature and complexity of the business to ensure that staff always act in the best interests of clients.
It is Our policy that none of Our employees offer, give, solicit or accept gifts or rewards (monetary or otherwise) from companies with whom We do business.
Whilst We make every effort to ensure that cover is placed with financially strong companies, We do not guarantee the solvency of any insurer We place business with. If a participating insurer becomes insolvent, You may still be liable to pay the premium, whether in full or pro-rata. We deny any liability in the event of the Insurer becoming insolvent.
5. YOUR OBLIGATIONS.
Consumer – Duty not to make a misrepresentation
If You are a consumer as defined by the Financial Services and Pensions Ombudsman Act You must answer all questions posed by Us or the insurer honestly and with reasonable care so as not to make a misrepresentation to insurers. Failure to comply with this duty may mean that the policy is void and the insurer may not be liable to pay all or some of Your claim(s). Specific questions will be asked. Where You do not provide additional information (after being requested to do so) it can be presumed that the information previously provided remains unchanged. Please see Appendix A for Consumer Insurance Contract Act 2019 information, which provides further information relevant to You the consumer, including Yours and insurers pre and post contractual obligations.
6. NO CLAIMS BONUS.
If You have informed Us that You are entitled to a No Claims Bonus but this is not validated with the relevant proof, Your policy may be subject to an additional premium, it may be cancelled or be made null and void from the inception date of Your policy.
For Your protection prior to Your renewal date, We will send You a renewal invitation 20 working days in advance of the policy’s expiry which will detail the premium due and the details We hold regarding Your policy. It’s important You check Your details to ensure the information We have is accurate and that You inform Us of any changes in Your circumstances.
To ensure that the policy continues to meet Your needs we may offer an alternative insurer at renewal, however if You would like to remain with Your previous insurer, please contact Us to let Us know. Your cover will cease on Your renewal date unless You contact Us beforehand to accept the renewal and make a payment.
You must tell Us as soon as possible of any incident or circumstance which may result in a claim under any insurance arranged by Us and of all relevant facts relating to it. Failure to do so may result in the insurer not paying the claim. This is in addition to any obligations imposed by insurers, details of which will be set out in the policy wording. We will notify insurers in accordance with the circumstances notified by You. You will be required to give all necessary information and assistance required by insurers in order to deal with Your claim.
In some circumstances, claims will be dealt with directly by Your insurer or by someone appointed by them. We will let You know if that is the case.
If You are paying Your premium by way of instalments, any outstanding amount on Your finance agreement will become immediately payable in the event of a claim.
9. QUOTATION PERIODS.
All quotations provided will be valid for 30 days or as stated on the written quotation. Quotations for insurance are indicative only. The final premium can only be confirmed upon receipt of proposal forms and relevant documentation.
10. CREDIT CHECKS.
We and other companies involved in arranging Your insurance, such as insurance companies, other insurance intermediaries and finance companies may use public and personal data from a range of sources including credit reference agencies. The information is used to ensure that We obtain the best cover for You and to ascertain the most appropriate payment options for You and to protect You from fraud. A credit agency search will appear on your credit record, whether or not Your application proceeds but will not affect Your credit rating. If You have any questions about this or any other matter, please contact Us at the details above.
11. COOLING OFF PERIOD/RIGHT OF WITHDRAWAL (Distance Marketing Directive).
A consumer is defined by the Distance Marketing Directive, as a natural person acting for purposes outside his/her trade, business or profession. Where You qualify as a consumer under this directive You have the right to withdraw from an insurance policy which was provided at a distance (i.e., via internet or via telephone, without any face to face contact with Us) within 14 working days of the start date of the policy or the date You received the policy schedule, whichever is the later, without penalty and without giving any reason under S.I. No. 853/2004 European Communities (Distance Marketing of Consumer Financial Services) Regulations 2004 – this is known as the Cooling Off Period.
The right of withdrawal must be exercised by notice in writing to Us, quoting Your policy number. Should this right be exercised the Insurance Company may charge a pro rata premium for the period You are on cover. Any fee or charge paid by the consumer to Us for work carried out prior to cancellation shall not be refundable. If the cover is motor insurance the premium cannot be refunded and/or issued until the Certificate of Insurance and Windscreen Disc have been received by Us. The rights under this directive do not affect Your rights as a consumer under the Consumer Insurance Contracts Act 2019.
This right to withdraw does not apply to any insurance policy under which insurance cover is provided for less than 1 month. No refund will be allowed when the policy has been subject to a claim.
12. LANGUAGE OF COMMUNICATIONS.
All communications between You and Us including all communication of terms and conditions will be in English unless otherwise agreed in writing.
13. ELECTRONIC COMMUNICATIONS.
Both parties may communicate with each other using electronic mail and attachments. Both parties accept the inherent risks of using such means of communication. Both parties are responsible for checking that messages received are complete and both agree that in the event of a dispute neither will dispute the legal evidential standing of an electronic document. Any agreement reached using electronic mail will be binding on both parties.
Although We have in place virus protection software You should use Your own virus protection software. Neither We nor You accept any responsibility to the other for viruses that may enter Our respective systems or data via Our electronic communications.
We are unable to accept instructions from You by means of text messages or other electronic messages or messages received other than via Our corporate e-mail addresses or, where relevant, by any software We have asked You to use for the purposes of providing information relevant to Your insurances.
Both parties may communicate by telephone, but it is agreed that no instructions that require action will be left on any messaging service since neither party can guarantee that they will be received or actioned. For quality assurance, verification, training and monitoring purposes, to assist in the complaint’s procedure and/or to help detect fraud, We may record incoming and outgoing telephone calls and such calls may be monitored.
15. ANTI-BRIBERY AND CORRUPTIONS.
You agree to comply at all times with all laws and regulations that apply to You related to anti-bribery and corruption, including, where appropriate, the UK Bribery Act 2010. We fully comply with the Bribery Act 2010, and will not accept any form of payment, gift or service, the intention of which could be considered to result in the improper performance of Our obligations to You. If We reasonably believe that You have attempted to offer a bribe or engaged in activities contrary to applicable anti-bribery and corruption law and regulation, We have the right to terminate Our agreement with You immediately.
We shall not provide any services and shall not be liable to pay any sums or provide any benefit to You to the extent that the provision of such services, payment of such sums or provision of such benefit would breach or expose Us to any enforcement or other adverse action under sanctions, prohibition or restriction under United Nations resolutions or the trade or economic sanctions, laws or regulations of the European Union, United Kingdom or United States of America. If You have any concerns in relation to any of the above, You should let Us know.
17. DATA PROTECTION.
We are subject to the requirements of the General Data Protection Regulation 2018 and the Irish Data Protection Act 2018.
We agree to keep all Your confidential information in strict confidence and not disclose such information except:
We agree to keep all Your confidential information in strict confidence and not disclose such information except:
It is always Our intention to provide You with a quality service. However should You have cause to complain please send Your complaint in writing to The Compliance Manager, Principal Insurance Ireland DAC, Unit 45, Block 5, Northwood Court, Santry, Dublin 9, D09 H578 or to firstname.lastname@example.org.
We will acknowledge Your complaint, in writing, within five (5) business days of the complaint being made. We will also inform You of the name of one or more individuals that will be Your point of contact regarding Your complaint until the complaint is resolved or cannot be progressed any further. We will provide You with an update on the progress of the investigation of Your complaint, in writing, within twenty (20) business days of the complaint being made.
We will aim to provide You with Our decision on Your complaint, in writing, within forty (40) business days of the complaint being made, unless We write to You advising that a response will be delayed.
Should You remain dissatisfied with the final response from the above or if You have not received a final response within forty (40) business days of the complaint being made, You may be eligible to refer Your complaint to the Financial Services and Pensions Ombudsman (FSPO) at Financial Services and Ombudsman, Lincoln House, Lincoln Place, Dublin 2, Ireland, email email@example.com and website www.fspo.ie.
If You have purchased Your policy online You can also make a complaint via the European Union’s online dispute resolution (ODR) platform. The website for the ODR platform is: http://ec.europa.eu/odr.
Your right to complain to Us and/or to refer Your complaint to the FSPO is without prejudice to Your right to take legal action.
Investor Compensation Company Ltd (ICCL)
The Firm is a member of the ICCL Scheme established under the Investor Compensation Act 1988 (as amended). This legislation provides for the establishment of a compensation scheme and for the payment, in certain circumstances, of compensation to certain clients of firms (known as eligible investors) covered by the Act. However, You should be aware that a right to compensation may arise where (i) client money or investment instruments held by Us on Your behalf cannot be returned (either for the time being or for the foreseeable future); and/or (ii) where the client falls within the definition of eligible investor as defined in the Act. In the event that a right to compensation is established, the amount payable is the lesser of 90% of Your loss which is recognised as being eligible for compensation or €20,000. For further information contact the Investor Compensation Company Ltd. at +353(0)1 224 4955.
Brokers Ireland Compensation Fund
As a member of the Brokers Ireland, the We are also a member of the Brokers Ireland Compensation Fund (Fund). Subject to the rules of the scheme, the liabilities of its member firms up to a maximum of €100,000 per client (€250,000 in aggregate) may be discharged by the Fund on its behalf if the member firm is unable to do so, where the above detailed ICCL (established by law) has failed to adequately compensate any affected client of the member.
21. PAYMENT OF PREMIUM AND OTHER MONIES.
Unless payment is made direct to the insurer or to a premium finance company, You must pay Us all amounts due in accordance with the terms and the payment date specified on Our invoice or other documentation. As We are under no obligation to fund premium to insurers on Your behalf, failure to pay the monies due by the payment date may lead to insurers cancelling Your policy.
Where You have arranged premium finance, the terms of Your premium finance agreement may assign Your interest in the insurance policy to that provider and any policy changes, including termination, may result in payment rebates to the finance provider.
Default payments and cancellation procedure
Cancellation by Us
We, reserve the right, notwithstanding delivery of policy document or receipt of same by the insured, to cancel the policy of insurance and obtain a credit from the Underwriters, apply same in the reduction of the amount due by the insured in the event of the following:
Provided that all reasonable charges pertaining to costs incurred by the Us have been paid and provided that no incident giving rise to a claim has occurred in the current period of insurance, You will be entitled to a proportionate return of the premium for the un-expired period of insurance unless the policy is on a minimum and deposit basis, and if this is the case, no return will be allowed on the policy.
Cancellation by Insurers
Your Insurer may cancel Your policy in certain circumstances. These conditions are clearly outlined on all policy documents, which You should read and take note of. Please note in the event of default payments, Insurers/ Product Producers reserve the right to:
Cancellation by You
You can cancel Your policy in writing at any time, in accordance with the terms and conditions set out in Your policy document and provided no incident has arisen that could give rise to a claim. Cancellations must be given in writing to our office. Should You cancel Your policy outside the applicable cooling off period (see “Cooling Off Period”), short terms rates or minimum and deposit premiums may apply. A notice of cancellation given in respect of a distance contract that relates to the issue of a motor vehicle insurance policy is not properly given unless the relevant certificate of insurance and insurance disc have been surrendered to Us.
Following the commencement of the Consumer Insurance Contract Act, Consumers may cancel a contract of insurance by giving notice in writing to the insurer, within 14 working days after the date the consumer was informed that the contract is concluded. The Consumer will bear the cost of the premium for the period of cover. This does not affect the notice periods provided under the Distance Marketing Regulations (See Cooling off period/Right of Withdrawal)
We reserve the right to make charges, in addition to any insurance premiums, for the arranging, amending, renewing and cancelling any policy of insurance. Please see Section 23. Our Remuneration below for further details in respect of this. However, You will not incur a liability to pay a fee unless We have given You prior notice of this.
22. CLIENT MONEY.
We, in the course of carrying on insurance distribution, handle client money in accordance with the Central Bank of Irelands Premium Handling Rules, which are designed to protect You. A copy of these rules are available on request.
When handling client money, we are required by law to act as agent for the Insurer, i.e., risk transfer applies. Where risk transfer applies, You will be protected to the extent that any premiums We receive from You are treated as having been received by the insurer when they are received by Us. Where the agreement extends to premium refunds and/or claims, any premium refunds or claims will be treated as received by You only when they are actually paid to You.
Segregation of Bank Accounts
Client money is kept separate from Our own money. Client money will be deposited into a designated ‘Client Premium Account’, Any interest earned on client money will be retained by Us.
Where risk transfer applies, commission will become due and payable to Us for Our own account immediately on receipt of the premium, provided this is consistent with the terms of business of the insurer to whom the premium is payable.
23. OUR RENUMERATION.
We are remunerated for Our services in the following ways:
When We arrange a policy with an insurer on Your behalf, We may receive commission from the insurer which is a percentage of the total annual premium for the work involved in placing or renewing an order and finalising the product with them on Your behalf. Any commissions received are not offset against any fees, either in part or in full. Any commission is considered to be fully earned when Your insurance(s) incepts. A summary of our Commission arrangements with product producers is available on our website www.principalinsurance.ie/policy-documents
We also charge you non-refundable fees for arranging and administrating your insurances;
Motorcycle / Car / Light Commercial Vehicle / Home Insurance
New Business/Renewal administration fee: €100.00
Mid-term Adjustment fee: €75.00
In addition to commission and administration fees, We may receive other income from insurers or third parties, including but not limited to additional payments from insurers based upon pre-agreed criteria. As a Credit Intermediary registered with the Competition and Consumer Protection Commission (CCPC) the firm may be able to arrange premium finance on Your behalf, for which we will be remunerated up to a maximum of 10% of the credit amount. As with any credit agreement, terms and conditions will apply and we will be happy to clarify any questions that You may have with regard to these. We strongly advise that You read all documentation relating to such agreements before entering into same.
Services on behalf of insurers
We have agreements in place with certain insurers that We will undertake certain activities on their behalf which may include producing policy documentation, compilation of risk data, risk identification surveys, and claims management. In return for these services certain insurers will make a payment to Us. These payments are separate, and in addition to, any commissions, or fees and administration fees that You pay Us.
Our commitment to transparency
You are entitled at any time to request information regarding any commission or other income which We may have received as a result of placing Your insurance business. We will provide full details in writing where such request is made within seven (7) working days. Pursuant to requirements of the Central Bank of Ireland’s Consumer Protection Code, a summary of the details of all arrangements for any fee, commission, other reward or remuneration provided to the Us by product producers is available on our website.
24. INSTRUCTIONS FROM THIRD PARTIES.
We will not be able to discuss any policy information with anyone other than the policyholder, unless prior consent has been given by the policyholder. If You wish to authorise another person to have permission to deal with Us on Your behalf (i.e. make changes to Your policy / make payments / renew the policy) You must nominate this person in advance.
25. LIMITATION OF LIABILITY.
Nothing in this Agreement shall limit or exclude Our liability for personal injury or death caused by negligence, or fraudulent acts, or any liability to You arising under our regulatory obligations insofar as we are prohibited from limiting our liability to You in relation to the same.
In respect of all other claims arising out of or in connection with this Agreement, We will not be liable for any loss or damage where there is no breach of a legal duty owed to You by Us, where such loss is not a reasonably foreseeable result of any such breach, or for any increase in loss or damage resulting from breach by You of any term of this Agreement. We will have no liability in respect of losses relating to Your business such as lost data, lost profits or business interruption. Our total aggregate liability in respect of all claims arising out of or in connection to this Agreement shall be limited to the sum of €10 million, unless otherwise agreed in writing.
You acknowledge and agree that You shall only be entitled to make a claim against Us, and not against any individual employee, director or officer of Ours.
26. GOVERNING LAW.
This Agreement is governed by and construed in accordance with the laws of Ireland. Any disputes in relation to these terms of Business shall be subject to the exclusive jurisdiction of the Courts of Ireland.
27. THIRD PARTY RIGHTS.
No other person has any rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Agreement other than any associated and/or subsidiary companies parent undertakings of Principal Insurance Ireland Designated Activity Company, and/or individual employees, directors or officers of Ours. This provision shall not affect any right or remedy of a third party which exists or is available apart from the Contracts (Rights of Third Parties) Act 1999.
If any provision of this Agreement is found by any court or administrative body of competent jurisdiction to be invalid or unenforceable, such invalidity or unenforceability shall not affect the other provisions of this Agreement which will remain in full force and effect.
29. ENTIRE AGREEMENT
This Agreement sets out the entire agreement between Us in relation to the subject matter within the scope of this Agreement and supersedes any previous agreement, representations and understandings between Us in such respect with effect.
30. AMENDMENT TO TERMS.
We may amend the Terms of this Agreement at any time by giving You fourteen (14) days’ notice in writing. If You do not agree to the amended terms, You may cancel this Agreement from the date when the new terms would otherwise take effect.
Any notice given under or in connection with this Agreement shall be in writing and shall be:
Any notice shall be deemed to have been received:
This Agreement shall commence from the date that We advise You, or from the date You appoint Us to act as Your intermediary or You instruct Us to arrange insurances on Your behalf, whether at renewal of Your insurances or otherwise, whichever of these dates is the earlier. This Agreement shall then continue until cancelled in accordance with the Termination Clause below.
You or We may terminate this Agreement by giving thirty (30) days notice in writing. This Agreement shall automatically terminate on the date that any policies arranged by Us for You are terminated or are not renewed such that there are no such active policies.
In the event of termination by You, We will be entitled to receive all fees or brokerage due and payable (whether or not these have been received by Us) in relation to policies placed by Us prior to the termination of this Agreement, other than where such termination is in relation to Our breach of this Agreement or as a result of Us not providing the Services in accordance with any specific additional service agreement entered into with You.
Either party may terminate this Agreement immediately, by giving notice in writing to the other party, if the other party;
In the event that this Agreement is terminated, We will cease to be Your agent. As a consequence of this We will no longer provide You with any services, including claims handling where this service is provided to You prior to termination, except where We are required to continue handling Your claim under the terms of Our delegated authority granted by certain insurers.
Subject to any regulatory requirements applying, any commission or fee is considered to be fully earned when Your insurance(s) incepts, and any unpaid commission or fee will be due and payable to Us upon termination. Any unpaid fees may also be due and payable prior to inception of Your insurance(s) subject to the terms of the relevant fee agreement. Where a policy or policies is cancelled mid-term, (if permitted in accordance with its terms), We will deduct a proportion of the commission element from any return premium provided by the insurer(s).) as reasonably necessary to sufficiently cover our costs.
If after termination of this Agreement You still require services from Us, these will be subject to a new written Agreement and We reserve the right to make an additional charge for these services, however there is no obligation on Us to agree to perform such services.
Nothing in this section will affect Your ability to terminate Your insurance in accordance with the terms of Your agreement with the terms of the policy, or (if You are a consumer) Your right to cancel without giving any reason and without penalty within 14 working days from the conclusion of the contract (or, if later, receipt of the terms and conditions).
34. EFFECTIVE DATE.
These terms of business are effective for all of Our business and transactions on or after 1st February 2022, subject to a copy being issued to our existing and prospective clients in advance of, or as soon as practicable, after any such transactions. A copy having once been issued, said terms apply to all and any subsequent transactions unless and until amended terms of business are issued or otherwise notified to clients.
This section, and the duties and rights under same, applies only to policies governed by Irish Law, where the policyholder is a consumer as per definition set out below – it does not apply to any other policyholder.
The following definitions are set out in the Consumer Insurance Contracts Act, 2019:
“consumer”, in relation to a financial service, means—
(a) (i) a natural person, not acting in the course of business,
(ii) a sole trader, partnership, trust club or charity (not being a body corporate), with an annual turnover in its previous financial year (within the meaning of section 288 of the Act of 2014) of €3 million or less, or
(iii) an incorporated body that—
(I) had an annual turnover in its previous financial year (within the meaning of section 288 of the Act of 2014) of €3 million or less, and
(II)is not a body corporate that is a member of a group of companies (within the meaning of section 8 of the Act of 2014) with a combined annual turnover (in the previous financial year (within the meaning of section 288 of the Act of 2014) of the group of companies), of greater than €3 million,
(A) is a customer of a financial service provider,
(B) is a person or body to whom a financial service provider has offered to provide a financial service, or
(C) has sought the provision of a financial service,
(b) a consumer who was, in relation to a credit agreement, a customer of the financial service provider in a case where a credit servicing firm undertakes credit servicing in respect of the credit agreement concerned,
(c) an actual or potential beneficiary of a financial service, or
(d) an employee or a former employee entitled to benefit from an income continuance plan;
“consumer”, in relation to a pension product, means an actual or potential beneficiary of an occupational pensions scheme, a trust RAC or a PRSA who believes they have suffered financial loss because of maladministration of the scheme, trust or PRSA, as the case may be.
You may cancel a contract of insurance, by giving notice in writing to the insurer, within 14 working days after the date You were informed that the contract is concluded. This does not affect the notice periods already provided under European Union (Insurance and Reinsurance) Regulations 2015 ( S.I. No. 485 of 2015 ) or the European Communities (Distance Marketing of Consumer Financial Services) Regulations 2004 ( S.I. No. 853 of 2004 ) which is 30 days in respect of life policies, irrespective of whether the sale took place on a non-face to face basis, and 14 working days in respect of general policies only on sales that took place on a non-face to face basis (distance sales). The giving of notice of cancellation by You will have the effect of releasing You from any further obligation arising from the contract of insurance. The insurer cannot impose any costs on You other than the cost of the premium for the period of cover. This right to cancel does not apply where, in respect of life assurance the contract is for a duration of six months or less, or in respect of general insurance, the duration of the contract is less than one month.
Insurers may also request an update on information You previously provided, which the insurer shall specifically describe and provide You with a written copy of the matter previously disclosed. You must respond honestly and with reasonable care to any such requests. Where the You continue to pay the premium, without response, it shall be presumed that the information previously provided has not altered. Renewal of the contract by insurers shall not be taken to remedy any previous breach of Your duty of disclosure arising under this Act.
You are under a duty to pay Your premium within a reasonable time, or otherwise in accordance with the terms of the contract of insurance.
Any clause in a contract of insurance that refers to a “material change” will be interpreted as being a change that takes the risk outside what was in the reasonable contemplation of the contracting parties when the contract was concluded.
You must notify the insurer of a claim within a reasonable time, or otherwise in accordance with the terms of the contract of insurance. If You become aware after a claim is made of information that would either support or prejudice the claim, You are under a duty to disclose it. (The insurer is under the same duty). If, in respect of the insurance contract the insurer is not obliged to pay the full claim settlement amount until any repair, replacement or reinstatement work has been completed and specified documents for the work have been furnished to the insurer, the claim settlement deferment amount cannot exceed:
(a) 5% of the claim settlement amount where the claim settlement amount is less than €40,000, or
(b) 10% of the claim settlement amount where the claim settlement amount is more than €40,000.
An insurer may refuse a claim made by You under a contract of insurance where there is a change in the risk insured, including as described in an “Alteration of Risk” clause, and the circumstances have so changed that it has effectively changed the risk to one which the insurer has not agreed to cover. You must cooperate with the insurer in an investigation of insured events including responding to reasonable requests for information in an honest and reasonably careful manner and must notify the insurer of the occurrence of an insured event in a reasonable time. If You make a false or misleading claim in any material respect (and know it to be false or misleading or consciously disregards whether it is) the insurer is entitled to refuse to pay and to terminate the contract.
Where an insurer becomes aware that a consumer has made a fraudulent claim, they may notify the consumer advising that they are voiding the contract of insurance, and it will be treated as being terminated from the date of the submission of the fraudulent claim. The insurer may refuse all liability in respect of any claim made after the date of the fraudulent act, and the insurer is under no obligation to return any of the premiums paid under the contract. A court of competent jurisdiction can reduce the pay-out to You if You are in breach of Your duties under the Act, in proportion to the breach involved.
Terms of Business February 2022