New PPI Products Cancellation period
In its new Insurance Conduct of Business sourcebook (ICOBS) published today it sets out the standards and requirements for general insurance firms on how they deal with their customers.
The new rulebook aims to improve selling practices for protection products (critical illness, income protection, term assurance and PPI). Some of these new measures will apply to all protection products including a new standard to ensure better oral disclosure of key information about policies to help consumers make informed purchasing decisions.
The FSA said there will be a stronger framework of rules to back its drive to improve selling standards in PPI markets. This includes increasing the existing cancellation period of 14 days to 30 days and a new rule requiring firms to establish that customers would be eligible to claim benefits.
The new general insurance regime will come into effect on 6 January 2008 with firms being allowed a six month transitional period for implementation. All firms are expected to meet the required standards by 6 July 2008.
Dan Waters, FSA director of retail policy and themes, said: “ICOB is another important achievement in more principles-based regulation. We have greatly simplified our rules in areas of general insurance markets where outcomes for consumers are generally good.
“In a few areas, however, like payment protection insurance (PPI), we have responded to continuing market failures and consumer detriment by introducing carefully targeted rules to help ensure that consumers achieve a fair deal.”
Tags: ppi claim, ppi compensation