Insurers of directors backdating claims face
This entitled the FSP to deny the Applicants’ claim as its policy provision was in compliance with section 39 of the Act.The FSP’s purported cancellation of the instalment contract however was void.Provisions including sections 39, 59, 62 and 63 of the Act can apply in these situations.
In a number of disputes that we have considered, the FSP has written to the consumer to inform them that they missed an instalment payment, but not attempted to contact the consumer in any other way.
Privacy laws may prevent a related party from passing on information to an insurer.
In a number of instalment contract disputes considered by FOS, for a considerable time, the consumer did not hear from the FSP or pay instalments as arranged from a credit card or bank account.
This article: An instalment contract of general insurance is a contract that provides for the premium to be paid by seven or more instalments over a year.
The Insurance Contracts Act 1984 (the Act) imposes requirements that insurers have to meet when considering:where a consumer misses an instalment payment.
Section 59 states the time at which such a notice cancels the contract.