Our Terms of Business
The purpose of the following information is to set out the basis of the way in which we conduct our business both here in the UK and with our clients throughout the world.
RA Insurance Brokers Limited of 29 Dingwall Road, Croydon, Surrey, CR0 2NB (“we/us/our/RA Insurance Brokers Limited”) is authorised and regulated by the Financial Conduct Authority (FCA). Our Firm Reference Number is 310759. We are permitted to arrange, advise on, deal as an agent of insurers and assist in claims handling with respect to non-investment insurance policies. You can check these details on the FCA’s Register by visiting the FCA’s website https://register.fca.org.uk or by contacting the FCA Consumer Helpline on 0800 111 6768. We act on your behalf in arranging your insurance based on a fair analysis of the market for all products except Motor Trade.
As part of our commitment to providing an excellent level of service, we will comply with the FCA regulations relevant to an insurance broker, which require us to:
- Conduct our business with integrity, pay due regard to your interests and treat you fairly.
- Conduct our business with due skill, care and diligence.
- Pay due regard to your information needs and communicate information to you in a way which is clear, fair and not misleading.
- Manage conflicts of interests fairly. These could arise between both you and ourselves and/or you and another client.
We will also take into account the following FCA client definitions during our dealings with you:
- Consumer – any natural person acting for purposes outside his trade, business or profession.
- Commercial – a client who is not a consumer.
If it is not clear in a particular case whether you are a consumer or commercial client, we will treat you as a consumer.
Our remuneration, fees and charges
We receive remuneration for our services by receiving a percentage of the insurance premium by way of commission. Alternatively an agreed administration fee may be charged or in some instances a combination of a fee and commission. 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. You are entitled to request information regarding our remuneration, including the amount of any commission we receive.
We reserve the right to make charges in addition to any insurance premiums, for the arranging, amending, renewing and cancelling of any policy of insurance, or any significant work we might undertake on your behalf. Details of any charges to be made will be declared to you in advance so that you are able to make an informed decision about these before they become due and payable.
We may also earn income in a number of different ways. This may be in the form of an administrative expense. Some insurers may also provide efficiency fees or production over-riders periodically to reflect the benefit of receiving large amounts of business from a single source that has been handled promptly and efficiently. Occasionally certain insurers may wish to reflect the profitability of our account with them by way of payment to us.
It is our intention to provide a high level of service at all times. However if you have reason to make a complaint about our service you should submit your complaint in writing to The Complaints Officer 29 Dingwall Road, Croydon, Surrey, CR0 2NB or alternatively email your complaint to firstname.lastname@example.org. You may be entitled subsequently to refer it to the Financial Ombudsman Service. Further information is available at www.financial-ombudsman.org.uk or telephone 08000 234 567.
We will confirm details of all covers effected in writing including the identity of the Insurer. Our aim is to provide all correspondence in a simple and understandable format. In the event of any remaining areas of uncertainty, please contact us. Our staff are always happy to clarify the cover provided. We want to make it easy for you to do business with us. Insurers are encouraged to produce their documentation promptly.
If you would like a new policy booklet at renewal or your policy, please contact us.
Protecting your information
All personal information about you will be treated as private and confidential (even when you are no longer a customer), except where the disclosure is made at your request or with your consent in relation to administering your insurance, and except where law requires us. The FCA may ask us to provide it with access to our customer records in order that it may carry out a review of our activities. Some or all of the information you supply to us in connection with your insurance proposal may be passed to insurance and other companies for underwriting, claims or premium collection purposes. Under the Data Protection Act 1998 you have a right of access to see personal information about you that is held in our records, whether electronically or manually. If you have any queries, please write to the managing director at the above address.
We and/or the insurers and/or credit providers may use publicly available data from a variety of sources, including credit reference agencies and other external organisations to verify your identity or creditworthiness, to avoid fraud, and to obtain beneficial quotes and payment options on your behalf. Each of the searches may appear on your credit report whether or not your application proceeds.
By agreeing to these terms and conditions you agree to these uses of your information.
Protecting your money
Prior to your premium being forwarded to the insurer, and for your protection, we either hold your money as an agent of the insurer (in which case your policy is treated as being paid for), or we hold it in a non-statutory trust client bank account on trust for you. We may extend credit to other customers from this account and we may need to transfer your money to another intermediary in some cases. However your money will be protected at all times because of our requirements under the FCA rules. We also reserve the right to retain interest earned on this account. By accepting these Terms of Insurance Business you are giving your consent for us to operate in this way.
We use all reasonable skill and care to protect your interests and monitor the security of the insurers with which we transact business using information available in the public domain. However, we can give no guarantee of the financial stability of insurers and we accept no liability for any financial losses or increased costs suffered by you arising from their financial insecurity.
Premiums and financial aspect
In order to be able to offer credit facilities, we are also authorised by the FCA to broker credit. We normally accept payment by guaranteed cheque but not by credit card although some insurance companies will accept payment by this method directly. You may be able to spread your payments through insurers’ instalment schemes or a credit scheme that we have arranged with a third party finance provider, from whom we receive a commission. We will give you full information about your payment options when we discuss your insurance in detail. Premiums must be provided in cleared funds in accordance with the amounts and payment dates specified to you. Failure to meet the payment date may lead to an insurer cancelling your policy. 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.
Payment to third parties
We may transfer client money to another person, such as another broker or settlement agent, for the purpose of effecting a transaction on your behalf through that person. This may include brokers and settlement agents outside the UK. The legal and regulatory regime applying to a broker or settlement agent outside the UK may be different from that of the UK and, in the event of a failure of the broker or settlement agent, this money may be treated in a different manner from that which would apply if money were held by a broker or settlement agent in the UK. You may notify us if you do not wish your money to be passed to a person in a particular jurisdiction.
We are covered by the Financial Services Compensation Scheme. You may be entitled to compensation from the scheme 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, also without any upper limit. Further information about compensation scheme arrangements is available from the FSCS on 0800 678 1100 or 020 7741 4100, or by visiting www.fscs.org.uk
We may enter into agreements for introduction of business to the company. These agreements provide for the remuneration of such persons.
Duration and termination
These terms of business and our appointment shall take effect immediately and shall continue with full force and effect until either
- completion of the Services or
- replacement by new terms of business or
- terminated in accordance with the provisions below.
These terms of business may be terminated at any time by mutual agreement, or by either you or us if:
- the other is in material breach of a term of these terms of business, and if such breach is capable of remedy, fails to remedy the breach within 30 calendar days of receiving notice specifying the breach to be remedied; or,
- the other shall become insolvent, or enter into receivership, liquidation, provisional liquidation or a voluntary arrangement with its creditors, or if a party ceases or threatens to cease to carry on business or has an encumbrancer take possession of, or a receiver or administrative receiver appointed over, all or any part of its assets; or,
- either you or we serves not less than 30 calendar days written notice of termination on the other party.
With effect from termination (whatever the reason for termination) we shall have no further obligation to perform any of the Services and all sums payable by you shall become due and payable.
- For the avoidance of doubt, if our appointment and/or these terms of business are terminated, or we cease to act on your behalf in relation to the placement of insurance, we shall cease automatically to handle claims on your behalf in respect of insurance contracts, whether placed by us or otherwise. We will consider continuing to provide claims handling services for you after termination of our appointment and/or these terms of business, or cessation of us acting on your behalf in relation to the placement of insurance, if you instruct us to do so in writing and an additional fee for such services is agreed between you and us
- We will consider continuing to handle claims on insurance contracts we have placed for you at your request but only if we are able to do so and can agree an appropriate remuneration.
The expiry or termination of these terms of business shall not affect any provision of these terms of business which expressly or by implication is intended to survive such expiry or termination. Expiry or termination of these terms of business shall be without prejudice to accrued rights and obligations.
Subject to any regulatory requirements placed on us, after termination (whatever the reason for termination) we will not retain copies of any insurance contracts placed by us on your behalf so you should make appropriate arrangements for their safekeeping.
For the purposes of these Terms of Business, Liability includes actions, awards, costs, claims, damages, losses (such as without limitation any direct or indirect consequential losses), demands, expenses, loss of profits, loss of reputation, judgments, penalties and proceedings and any other losses and/or liabilities. Save as provided in these Terms of Business, we shall have no Liability to you for any:
- Expenses, loss of profits and/or damage to goodwill.
- Pure economic and/or other similar losses.
- Special damages.
- Aggravated, punitive and/or exemplary damages.
- Business interruption, loss of business, loss of contracts, loss of opportunity and/or production.
- Consequential losses and/or indirect losses.
Our total Liability to you in connection with these Terms of Business shall not exceed £10 million as a total aggregate Liability.
Each of the limitations and/or exclusions in these Terms of Business shall be deemed to be repeated and apply as a separate provision for each of:
- Liability in contract (including fundamental breach).
- Liability in tort (including negligence).
- Liability for breach of statutory duty.
- Liability for breach of Common Law and/or under any other legal basis
except that the Clause above placing a financial cap on our Liability shall apply once in respect of all of the said types of Liability.
Nothing in these Terms of Business shall exclude or limit a party’s Liability for death or personal injury due to its negligence or any Liability in relation to fraud or any other liability which it is not permitted to exclude or limit as a matter of law.
If we take over the servicing of insurance policies which were originally arranged through another source, whether an 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 error, omissions or gaps in your current insurance policy. Should you be concerned about your policy, we would ask you to contact us without delay for an immediate review of your cover.
How to cancel
Please contact us immediately if you wish to cancel any insurance policy we have arranged for you. The terms of your policy may allow insurers to retain the premium in full or to charge short-period premiums in the event of cancellation before the policy expires, please refer to your policy summary or your policy document for further details. If you cancel you may receive a pro rata refund of premium from the insurer. 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 the event of cancellation therefore, any refund due may not entirely be proportionate to the premium paid.
We shall not be liable in any way for failure to perform, or delay in performing our obligations under these terms of business if the failure or delays is due to causes outside our reasonable control including, but not limited to, act of God or government act, fire, explosion, flood, accident, civil common or industrial dispute (“Force Majeure”). In the event of Force Majeure arising we will notify you as soon as reasonably practicable.
- To pay our fee (if applicable) in accordance with our agreement;
- to pay all premiums and any other charges on or before the due date as set out in our debit note, renewal invitation or new business quotation, as applicable. We will advise you if insurers have imposed a premium payment warranty or condition in which case you will pay the premium within the time specified by insurers. Failure by you to comply with a premium payment warranty or condition may give the insurer the right to cancel your insurance contract coverage or to refuse to pay any claims under the relevant insurance contract. Please contact us immediately if you may not be, or are not, able to comply with a premium payment warranty or condition. Where premium is payable to an insurer by a certain date, you will pay us in sufficient time for us to clear those funds and make the payment to the insurer by the relevant date. We will not be responsible or liable for the payment of premium on your behalf and will not make any payment to insurers where we have not received cleared funds from you. In the event that we make a payment of any amount on your behalf prior to being in receipt of the relevant funds from you, you will immediately repay that amount on our request. If such sums are not paid, we shall be entitled to recover that amount by means of set-off of any sums owing to you and you agree that we may do so;
- to provide accurate, complete and timely information to enable us to fulfil our obligations under these terms of business including assisting you to make a fair presentation of the risk. It is understood and agreed by you that it is your responsibility to provide all such information both before and after inception of cover (for example, where there is a change or variation in cover) and on renewals. This responsibility applies whether or not the information is available elsewhere within RA Insurance Brokers Limited;
- that we do not act as valuers and it is your responsibility to ensure that sums insured under your policy are what you consider adequate and where required you shall take the correct professional advice to ensure that you are appropriately covered.
- that we do not accept any responsibility for the adequacy of your Indemnity Period(s)/Limit(s), that you shall take the correct professional advise to ensure the correct Indemnity Period(s)/Limit(s) are reviewed and requested.
- that we shall provide the Services in reliance on the information and data provided by you. Any answers or statements given on a proposal or claim form or any other material document completed by you, it is your responsibility and should therefore be checked carefully. Unless agreed otherwise in writing, we are under no obligation to investigate or verify the accuracy or completeness of any information or data provided by you and no liability shall arise for any errors or deficiencies in the Services arising out of or based on any such inaccurate or incomplete information or data;
- to review carefully any documentation supplied by us and advise us immediately if any such documentation does not appear to be in accordance with your instructions or requirements;
- to hold harmless, indemnify and keep indemnified RA Insurance Brokers Limited against all liability that may arise from time to time and against all claims, demands, actions, proceedings, damages, losses, costs (including all legal costs) and expenses whatsoever, arising out of or in relation to any act, omission or breach for which you are responsible, and which are made or brought against RA Insurance Brokers Limited in connection with our appointment hereunder; and
- to notify us or insurers promptly of all claims in accordance with the insurance contract conditions and procedures and to disclose all material information.
Your duty of disclosure
You must take reasonable care not to make a misrepresentation to the insurer. This means that all the answers you give and statements you make as part of your insurance application, including at renewal and when an amendment to your policy is required, should be honest and accurate. If you deliberately or carelessly misinform the insurers, this could mean that part of or all of a claim may not be paid.
Where we arrange insurance wholly or mainly for purposes related to your trade, business or profession, you have a duty under The Insurance Act 2015 to make a fair presentation of the risk. This means that you must disclose every material circumstance which you and/or your senior management and/or anyone responsible for arranging your insurance know or ought to know. Alternatively, you must disclose sufficient information which would put the insurer on notice that it needs to make further enquiries for the purpose of revealing those material circumstances. You are expected to carry out a reasonable search in order to make a fair presentation of the risk and will be deemed to know what should reasonably have been revealed by the search.
Your duty of fair presentation applies at the start of the policy, at renewal, and when any variation of the policy is arranged. If you fail to make a fair presentation, the insurer may refuse to pay your claim or reduce the settlement amount, depending on the circumstances.
You are reminded that it is an offence under the Road Traffic Act to make any false statements or withhold any relevant information to obtain an Insurance Certificate. You are also advised to keep copies of any correspondence you send to us or direct to your insurer.
Some example of such disclosure(s):
- Any loss or incident/dispute that did not result in a claim.
- Alterations in location or occupancy
- Acquisitions or mergers
- Any changes in occupation, manufacturing processes or additional products or services
- Removal of sprinkler systems or alarm systems and/or their response
- Deterioration of health or driving record
Notification of incidents
It is essential that you notify us promptly after discovery of all incidents or allegations/disputes that may result in a claim against your insurance policy. You must do so whether you believe you are liable or not. Any failure to do so may result in your insurer refusing to accept a claim. Any letter or communication making allegations which could give rise to a claim which is received by you or any third party must be passed to us immediately, without acknowledgment. Only by providing prompt notification of incidents can your insurance company take necessary steps to protect your interests.
R A Insurance Brokers Limited telephone number is 0208 256 1000.
You acknowledge that there may be a time bar in law for pursuing insurers for payment of your claims. You agree that you will monitor time bar and take legal advice when required. You also acknowledge and agree that we will not be responsible for advising you on time bar issues.
Receipt of instructions
We do not consider instructions to arrange or change cover sent to us by post, electronic email or facsimile, to have been received until they have been physically received by the relevant personnel in our offices and we have subsequently confirmed cover to you in writing. We do not accept responsibility for instructions which do not reach us due to failures in the postal, electronic or telecommunications systems.
Law and jurisdiction
These terms of business shall be governed by and construed in accordance with the Laws of England and any dispute arising out of or in connection with it shall be submitted to the exclusive jurisdiction of the Court of England.