CIPR 6.5.4 Non-investment insurance — claims handling by insurance intermediaries

(1) An authorised firm must act with appropriate care, skill and diligence in acting for a customer in relation to a claim on a non-investment insurance contract.
(2) An authorised firm must not, in relation to a claim on a non-investment insurance contract, do either of the following:
(a) put itself in a position where its own interest, or its duty to any person for whom it acts, conflicts with its duty to a customer, unless:
(i) it properly disclosed to the customer all the information needed to enable the customer to give informed agreement to the arrangement; and
(ii) it has obtained the customer's prior informed agreement;
(b) decline to act for the person or customer unless, in the particular circumstances of the case, disclosure and informed agreement are insufficient to reconcile the conflict.
(3) If an authorised firm acts for an insurer and not a customer in relation to a claim on a non-investment insurance contract that it arranged, the firm must instruct the customer that, in relation to the claim, it is acting on behalf of the insurer, and not the customer.

Guidance

Subrule (3) would apply, for example, if an authorised firm has delegated authority for claims handling and deals with a claim in relation to a contract that it sold to a customer, but is not acting for the customer in relation to the claim.
(4) If an authorised firm is notified of a claim on a non-investment insurance contract that it arranged, and the insurer has not given it authority to deal with the claim, the firm:
(a) must forward the notification to the insurer promptly; and
(b) must inform the customer immediately that it cannot deal with the notification.
Derived from QFCRA RM/2019-2 (as from 1st January 2020).