Terms of Business
MPW Insurance Brokers Limited
TERMS OF BUSINESS AGREEMENT
The following Terms of Business Agreement sets out the basis on which MPW Insurance Brokers Limited (‘MPW’, ‘We’, ‘Us’, ‘Our’) will provide business services to you as a private or corporate client of the firm.
Please read this document carefully. It sets out the terms on which we agree to act for our clients and contains details of our regulatory and statutory responsibilities.
Please contact us immediately if there is anything in these terms of business which you do not understand or with which you disagree. We will be happy to answer any questions and will be willing to explain these terms and the reasons for them.
INFORMATION ABOUT OUR REGULATORY STATUS
MPW is an independent general insurance brokerage. We are authorised and regulated by the Financial Conduct Authority (FCA). Our permitted business is advising on, arranging (bringing about), making arrangements, dealing in, and assisting in the administration and performance of non-investment insurance contracts. Our FCA Register number is 304188. These details can be checked on the FCA’s Register by visiting the www.fca.org.uk or by contacting the FCA on 0800 111 6768.
As independent insurance intermediaries we act as the agent of our client. We are subject to the law of agency, which imposes various duties on us. However, in certain circumstances we may act for and owe duties of care to other parties. Where we become aware of any actual or potential conflict of interest, we will inform you of the situation, the options available to you and obtain your consent before we carry out your instructions.
OUR PRODUCTS AND SERVICES
For personal insurances we select products from a wide range of insurers.
For business insurances we will inform you at inception and at every renewal how we made our product selection and the capacity in which we are acting.
We only place business with Insurers which we consider to have a reputable standing in the market, providing a quality level of service and policy cover and not on pricing issues alone.
Unless we inform you to the contrary, we will advise and make a recommendation for you after we have assessed your needs.
Whilst we monitor the financial strength of the insurers with whom we place business it should be noted that the claims-paying ability of even the strongest insurers could be affected by adverse business conditions. We do not therefore guarantee the solvency of any insurer with whom we place business. You could become liable for the premium, whether in full or pro rata, where a participating insurer becomes insolvent.
Your policy documentation will confirm the basis of the cover we have arranged, give details of the insurers and be accompanied by an invoice. The dates that the premium is due, together with any penalties, will be clearly shown. You should check all policy documentation to ensure that the details are correct and the cover provided meets with your requirements. Any errors should be notified to us immediately.
All policies contain conditions and exclusions and some contain warranties and excesses. It is your responsibility to examine the document to familiarise yourself with these. A breach of a policy condition may result in non-payment of a claim and breach of a warranty may invalidate the cover if it is not complied with precisely.
For some types of insurance cover it is possible that a claim may be made under a policy long after its expiry date and it is therefore important you keep such documents safely.
The terms of any insurance that we arrange on your behalf will be based upon the information provided by you to us or to your insurers.
If you are a consumer (an individual buying insurance wholly or mainly for purposes unrelated to your trade, business or profession) you must take reasonable care to answer all questions put to you about your proposed insurance fully, honestly and to the best of your knowledge. If you do not understand the meaning of any question, or if you do not know the answer, it is vital that you tell us. Once cover has been arranged, you must immediately notify us or your insurer of any change to the information that has been previously provided. The most serious consequence of failing to provide full and accurate information before you take out insurance, or when your circumstances change, could be the invalidation of your cover. In that instance it would mean that a claim will be rejected.
If you are a commercial customer, or someone buying insurance mainly for purposes related to your trade, business or profession, you must disclose all ‘Material Facts’ to us or your insurers both at the outset and throughout the period of insurance cover. Material Facts are all the items of information that may influence the insurer’s decision over cover or the terms of your insurance. The most serious consequence of failing to disclose material information before you take out insurance and throughout the period of insurance could be the invalidation of your cover. In this instance it would mean that a claim will be rejected.
You are advised to keep copies of any correspondence you send to us or direct to your insurers.
You must pay the premium due in accordance with the amounts and payment dates specified on our invoice. Failure to meet the payment date may lead to insurers cancelling your policy thus leaving you without insurance cover.
Where insurers have specified that the premium must be received by a certain date, failure to comply can result in the automatic termination of your insurance contract.
We normally accept payments by cheque or by bank transfer. It is often possible to spread payments through insurers’ instalment schemes or a credit facility we have arranged with a specialist premium finance provider. When offering premium finance, please note that we act independently of any particular provider.
We will give full information about premium payment options when we provide quotations and at renewal.
In the absence of your instructions to the contrary before expiry date, we will automatically renew your policy if payment is usually made direct to the insurer by direct debit.
We have no obligation to fund any premiums on your behalf and cannot be held responsible for any loss which you may suffer as a result of a policy being cancelled or otherwise prejudiced due to the late payment of a premium where the delay is attributable to you.
Our remuneration will be either a fee as agreed with you or commission which is a percentage of the insurance premium paid by you and given to us by the insurer with whom the insurance is placed, or by a combination of both. Commission and fees are earned for the policy period and we will be entitled to retain all fees and commission in respect of the full policy period in relation to policies placed by us.
In addition to client fees and/or commission payments we may receive remuneration by way of administrative fees or commissions for services provided to underwriters. We may also receive revenue based upon the volume and/or profitability of insurance business placed with a given insurer over a specific period. These payments often recognise the services that we provide to the insurer over the given period and are not directly related to the services provided to you. We may also act as reinsurance brokers to underwriters with whom we have placed insurance, or reinsurance. We may also receive income from providers of premium financing facilities where, with your agreement, we have made such arrangements on your behalf.
You are entitled at any time to request information regarding any remuneration which we may have received as a result of placing your insurance cover.
Unless stated otherwise in our documentation, all quotations provided for new insurances are valid only for a period of 30 days from the date of issue.
You should be aware that quotations may change or be withdrawn if the information given to us or your insurers in proposal forms or declarations differs from that provided at the time the quotation was issued.
CHANGES TO YOUR COVER
We will normally deal with any requests to increase or amend cover on the day your instructions are received, or the next working day if a weekend or public holiday. Sometimes changes cannot be processed without obtaining additional information. If additional information is required we will contact you as quickly as possible.
We will confirm changes to your policy, once agreed, in writing. We will also advise you of any extra premiums you must pay or premiums we must return to you.
RECEIPT OF INSTRUCTIONS
We do not consider instructions to arrange or change cover which are sent to us by post, electronic mail or facsimile, or left on voicemail, to have been received until they reach the relevant personnel in our offices.
We do not accept responsibility for instructions which do not reach us at all due to failures in the postal, electronic or telecommunications systems.
If we take over the servicing of insurance policies which were originally arranged through another insurance broker or intermediary or directly with an insurer, we do not accept liability for any claim arising out of the advice given by that broker, intermediary or insurer, nor for any errors, omissions or gaps in your current insurance protection.
PERSONAL CREDIT CHECKS
When you ask us to obtain quotations for personal insurance products, you should be aware that some of the insurers we approach will carry out personal credit checks as part of the underwriting process. This means they will review information held by a credit reference agency. Whilst a record of the search will be added to your credit record, we are advised this will not have any detrimental effect on your credit rating or history.
To comply with Consumer Credit legislation, providers of personal credit are required to carry out affordability assessments before making advances of credit. This means that whenever we are asked to arrange personal premium finance we will pass your name, address and date of birth to the finance provider, to enable it to carry out an assessment. In assessing your application, the provider may search information held by a credit reference agency. Please note the credit reference agency will add details of the search and your application to their records, whether or not your application proceeds.
CREDIT AGREEMENT PAYMENT DEFAULTS
If any direct debit or other payment due in respect of a credit agreement entered into with our suggested provider of premium finance to pay insurance premiums, associated fees and charges is not met when presented for payment, or if you end or do not complete such credit agreement, you acknowledge and agree that it may be necessary for us or the premium finance provider to cancel on your behalf the insurance policies being paid by the said agreement, unless you immediately make other arrangements to pay the remaining balance of the insurance premiums. After cancellation, you agree that you will be responsible for any time on risk charge still outstanding and the finance provider’s reasonable costs after application of any refunds allowed by the insurers. You will be responsible for putting in place any alternative insurance arrangements you need, unless you have been able to satisfy the requirements we may have in such a situation to provide an alternative solution.
We provide protection for client money by holding all client money in a statutory trust bank account in accordance with FCA rules. This is segregated from our own money.
For the purposes of some transactions, please note that client money may pass through other authorised intermediaries before the insurer receives it.
Where we collect or hold money as agent of the insurer we may also hold that money in the same Client Bank Account.
Client money will be deposited with one or more approved banks, a list of which is available on request. Please notify us immediately if you do not wish us to use any bank or banks on this list.
Interest will not be paid to clients in respect of money held in Client Bank Accounts.
If you take out a personal policy through us which lasts for more than one calendar month, you may cancel the cover up to 14 days from the latter of:
- The policy start date or the date you receive full policy documentation from us or your insurers
- The renewal date or the date you receive full renewal documentation from us or your insurers
You will be informed if you have such a Cancellation Right in separate documentation.
Should you decide to exercise the Cancellation Right you will be entitled to a refund of premium less an appropriate pro rata charge for the period of cover given before the cancellation right was invoked. If the premium has not been paid, a charge may be made for the period of cover given prior to the exercise of the Cancellation Right.
Should any claim occur prior to the exercise of the Cancellation Right where the claim terminates the insurance cover, your insurers may not allow a refund of any of the premium paid.
If this Cancellation Right is not exercised within the 14-day period as stated above, and you decide to cancel the policy at a later date, the amount of any premium refund will depend upon the cancellation terms of your insurance policy.
To exercise the Cancellation Right you should contact us at our normal address or your insurers at the address shown on your policy.
If you wish to cancel your policy in circumstances other than as described in the section headed Cancellation Right, you may be entitled to a refund of part of your premium as long as no claims have occurred during the time you have been on cover. The refund due may not necessarily be proportionate to the remaining period of cover. Additionally you should note the following:-
- Insurers do not normally allow refunds in cases where a minimum and deposit premium has been charged
- Cancellation may not be possible until you return your certificate of insurance to us or your insurers
- Cancellation of a direct debit does not necessarily cancel a policy and any balance of premium owing may be requested by the insurers.
When your policy ends or is cancelled, we will send you any documentation and information to which you are entitled on request.
CANCELLATION OF THIS AGREEMENT
Our agreement may be terminated by either of us giving 30 days’ notice in writing to the other. In the event that you terminate our services we will be entitled to receive any fees and/or commission payable. Notice of this termination must be given in writing and will take effect from the date of receipt. Termination is without prejudice to any transactions already initiated unless otherwise agreed in writing. You will be liable to pay for any transactions or adjustments effective prior to termination and we will be entitled to retain any and all fees and/or commission payable in relation to policies placed by us prior to the date of termination.
Please ensure that you report all incidents that could give rise to a claim as soon as you become aware of them, either by contacting your insurer on their helpline or by telephoning our office. You will be advised if you need to complete a claim form or produce documentation to support your claim. In certain circumstances late notification may result in your claim being rejected.
If the claim involves damage to your property, please do not:-
- Dispose of damaged items; and/or
- Authorise repair work (except in an emergency or to prevent further damage)
Until your insurers or we advise that you can.
If your claim involves damage to third party property or injury to persons please pass copies of all correspondence, including Solicitors’ letters, to us immediately and unanswered. Any attempt to negotiate or respond to the incident, without prior reference to your insurers or us, may prejudice your cover.
You should be aware that a claim arising after renewal of the policy has been invited, may affect the assessment and acceptance of renewal by your insurers.
MPW takes no responsibility for fraudulent claims submitted by you and any action taken by the insurer against you.
LIMIT OF LIABILITY CLAUSE
Our maximum aggregate liability in respect of any and all claims made by you (under contract, tort, statute, negligence or otherwise) arising out of or in connection with our engagement to act in connection with any individual matter, shall be limited in aggregate to the sum of £8,000,000 in respect of each such matter (including interest and costs). Provided that this clause shall not exclude or limit our liability for:-
a) Death or personal injury caused by our negligence; or
b) Fraud or fraudulent misrepresentation
Subject to a) and b) above, we shall under no circumstances whatever be liable to you, whether in contract, tort (including negligence), breach of statutory duty, or otherwise, for any loss of profit, or any indirect or consequential loss arising under or in connection with the agreement.
Except as expressly provided in the agreement, all conditions, warranties, terms and undertakings, express or implied, statutory or otherwise in respect of the Services under this agreement are excluded to the fullest extent permissible by law.
Our aim is to provide a first class standard of service to all our Clients and to do everything we can to ensure that you are satisfied. However if you ever feel that we have fallen short of this standard and that you have cause for complaint, please contact Julian Nicholas, either:
- In writing at MPW Insurance Brokers Limited, 7/8 Tolherst Court, Turkey Mill, Ashford Road, Maidstone, Kent, ME14 5SF
If you cannot settle your complaint with us you may be entitled to refer it to the Financial Ombudsman Service.
You can request a copy of our procedures for dealing with complaints at any time.
We are covered by the Financial Services Compensation Scheme (FSCS). You may be entitled to compensation from the FSCS if we cannot meet our obligations. This depends on the type of business and the circumstances of the claim
Insurance advising and arranging is covered for 90% of the claim, without any upper limit. For compulsory classes of insurance, insurance advising and arranging is covered for 100% of the claim, without any upper limit.
Full details and further information on the scheme are available from the FSCS.
CONFIDENTIALITY AND DATA PROTECTION
All information provided by our clients is treated as confidential and only disclosed in the normal course of negotiating, arranging and administering your insurance. This may include disclosing information to agents and service providers such as loss adjusters and approved contractors.
With a few exceptions, for example information requested by a court, a regulatory body, or information which is already in the public domain, we will not release information to any other party without your consent.
We may also use the data we hold about you to provide you with information about other products and services which we feel are appropriate. You are requested to let us know if you do not want to receive this information.
We are registered under the Data Protection Act 1998 and we undertake to comply with the Act in all our dealings with your personal data.
LAW AND JURISDICTION
These terms of business shall be governed by and construed in accordance with English Law. In relation to any legal action or proceedings arising out of or in connection with these terms of business we both irrevocably submit to the non-exclusive jurisdiction of the English courts.
YOU ARE DEEMED TO HAVE ACCEPTED THESE TERMS OF BUSINESS AND GIVE YOUR ONSENT FOR US TO OPERATE IN THE WAYS DESCRIBED, UNLESS YOU ADVISE US OTHERWISE WITHIN 7 DAYS OF RECEIPT
MPW Insurance Brokers Limited
7/8 Tolherst Court
Kent ME14 5SF
Tel: 01622 683913
Fax: 01622 690958
Financial Ombudsman Service
South Quay Plaza
183 Marsh Wall
London E14 9SR
Tel: 0845 080 1800
Fax: 020 7904 1001
Financial Conduct Authority
25 The North Colonade
London E14 5HS
Tel: 020 7066 1000
Fax: 020 7066 1099