Terms Of Business
Please read this document carefully. It sets out the terms on which we agree to act for our clients in circumstances where the Church of Scotland Insurance Company Ltd (COSIC) is not the insurer and includes details of our regulatory and statutory responsibilities.
Where cover is arranged under the Church Insurance Scheme we are the insurer of the fire, lightning, explosion risks and for all other risks we act as an intermediary only.
Authorisation
Church of Scotland Insurance Company Limited of 67 George Street, Edinburgh, EH2 2JG is authorised and regulated by the Financial Services Authority (FSA). The FSA is the independent watchdog that regulates financial services. Our FSA Reference number is 202071.
As well as being an insurer in our own right, we are also permitted by the FSA to advise on, arrange and assist in the administration and performance of general insurance contracts supplied by other insurers.
The above information is available to check on the FSA’s Register by visiting the FSA’s website at www.fsa.gov.uk/pages/register or contacting the FSA on 0845 606 1234.
Ownership
Church of Scotland Insurance Company Limited is owned by the General Trustees of the Church of Scotland.
Customer Classification
The FSA classifies general insurance customers as follows:
A Consumer is an individual who is acting for purposes which are outside their normal trade, business or profession, that is, when arranging personal insurances.
A Commercial customer is one who is not a consumer, that is, one who is arranging insurance to protect a business, organisation or trust.
These classifications impact on how certain aspects of FSA regulation affect your position and they are highlighted within these Terms of Business.
Services and Products offered
Unless otherwise advised, the services we provide are as follows:
- Advising and making a recommendation to meet your insurance needs
- Arranging cover to meet requirements
- Help with ongoing changes
- Assistance with claims made on insurance policies we have arranged
For eligible churches, we offer a single scheme insurance product which is underwritten by one or more insurers including the Church of Scotland Insurance Company Ltd.
For other classes of insurance and non scheme church insurance, we select products from a limited range of insurers, the names of which are available on request.
For new household insurance, we offer the scheme products of one insurer.
For any other insurance not described above we will advise you separately of the basis of our product selection.
Unless otherwise agreed, any quotation given will remain valid for a period of 30 days from the date of issue of the quotation.
Insurer Solvency
Whilst we will take all reasonable steps to place your insurance with an insurer capable of meeting its future liabilities, we are unable to guarantee the continuing solvency of any company and do not accept liability for any losses arising or any additional costs in replacing the insurance with an alternative insurer.
Duty of Disclosure
It is a legal requirement that anyone seeking a new policy of insurance or cover for additional risks or renewal under an existing policy, must disclose any information that might influence the insurers in fixing the premium or determining whether to accept the risk. Failure to do so may entitle the insurers to avoid cover from inception and seek repayment of paid claims. If you are in any doubt as to whether information is material you should disclose it. You are advised to keep copies of documentation sent to or received from us for your own protection.
Adequacy of Sums Insured and Limits
At all times it is the responsibility of you, the insured, to ensure that the insured values and policy limits are adequate and property sums insured properly reflect current reinstatement/replacement costs. Whilst we seek to assist in establishing and maintaining insured values we cannot accept responsibility for their accuracy. We recommend that a suitably qualified surveyor/accountant be consulted to ensure that sums insured are correct.
Fair Treatment
We aim to treat you fairly at all times by ensuring that we provide you with insurance products, services and advice that is suitable and meets your needs and expectations. It is never our intention to put ourselves in a position where our interests, or duty to another party, prevent us from discharging our duty to you.
Conflicts of Interest
If we become aware of a conflict of interest we will inform you and obtain your consent before carrying out your instructions. As an example a conflict of interest may arise where we have authority to settle claims on behalf of another insurer.
Remuneration
The remuneration we receive for our service is normally in the form of brokerage. At any time Commercial customers may request information regarding any brokerage which we may have received from placing their insurance business. There may be occasions where we will charge you a fee for advice or services in addition to the insurance premiums. Where this is the case we will fully explain the basis of our charging and agree with you what the fee is for and when the fee is payable before you incur a liability to pay that fee. In addition to such brokerage and fees we may also benefit from earnings which we are able to generate due to the weight of our account placed with certain insurers and its underwriting performance, which is not identifiable to any specific account. These arrangements do not affect the recommendations we make to you which remain wholly based on your demands and needs.
Insurance Premiums (Holding money as an agent)
We collect and hold money as agent of the insurer.
Renewal
We will advise you in good time of the renewal of your insurance policy. We aim to issue renewal papers a minimum of 25 days in advance of your renewal date. Where payment for the contract you have undertaken is by regular instalments, for example by direct debit, you give your consent to the contract being automatically renewed without further reference to you at a later date. This means that insurance will continue to be provided to you and you will be obliged to continue to pay for such insurance, unless you specifically contact us prior to renewal to notify us that you no longer require such insurance.
Cancellation of Insurance
If you are a Consumer, you will be informed upon inception or renewal of your contract what cancellation rights apply to your policy and if any, how and when you should exercise such rights.
Claims
If you have an occasion to claim or an incident arises that may give rise to a claim on your policy, you must advise us immediately so that we can ensure that your claim is passed to the insurer promptly. Late notification of a claim may result in the claim being rejected. If we cannot deal with the notification we will advise you accordingly. You should not admit liability nor agree any course of action, other than emergency measures necessary to minimise the loss, until you have agreement from us or your insurer.
Duty of Care and Confidentiality
We will keep all records of all our business transactions for a minimum period of three years. We treat all our clients’ records as confidential even when they are no longer a client. Information provided to us by you will be used solely for the purpose of providing insurance broking and underwriting services to you. We cannot be held responsible for incorrect data in the event of non-disclosure.
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.
Under the Data Protection Act 1998 you have the right of access to your personal records held on our files. This may incur a small administration fee and we will tell you what the fee is if you ask for a copy of your information.
Should you require clarification of your rights under the Data Protection Act, visit www.ico.gov.uk or telephone 08456 30 60 60.
Complaints and the Financial Services Compensation Scheme (FSCS)
We will endeavour to act fairly and reasonably at all times and provide you with a professional service. Should you have any complaints about the service provided, please contact us in writing to the Chief Executive, Church of Scotland Insurance Company Limited, 67 George Street, Edinburgh, EH2 2JG or telephone us on 0131 220 4119. If you cannot resolve your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service (FOS) to which we subscribe. The contact details are as follows:
The Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London E14 9SR or e-mail financial-ombudsman.org.uk. The telephone number is 0845 080 1800. The FOS is available to Consumers and micro-enterprises which are defined as organisations and businesses employing less than 10 people and whose annual turnover and/or balance sheet total does not exceed €2m. We are covered by the Financial Services Compensation Scheme (FSCS) and 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, without any upper limit. Further information about the compensation scheme arrangements is available from the FSCS.
Money Laundering/Proceeds of Crime Act
Under UK Money Laundering regulations, we are obliged to report to the Serious Organised Crimes Agency (SOCA) any situation giving rise to a suspicion of money laundering and we are prohibited from disclosing any such report.
Policy Documents
Policy document or renewal schedule will be issued to you as quickly as possible by us or after receipt from insurers. When a policy or renewal schedule is issued you are strongly advised to read it carefully as it is this document, the schedule and any certificate of insurance which forms the basis of the contract of insurance you have purchased. Particular attention should be paid to any policy conditions, exclusions, warranties and claims provisions as failure to comply may invalidate your cover. If you are in doubt about these, please seek our advice promptly.
For certain types of insurance, for example Employers’ and Public Liability, it is possible that a claim may be made under a policy long after the expiry date of the cover. It is therefore important that all policy documentation is kept safely, particularly that which may be called upon to provide protection beyond the expiry date of cover.
Contract Certainty
The insurance industry is often called upon at very short notice to provide protection for customers wishing to transfer a risk. However, quite often there is uncertainty, either by the customer as to exactly what level of protection was provided and for the insurer not knowing exactly what they are insuring. To help avoid disputes from uncertainty, the insurance industry has produced a code of good practice to help provide “Contract Certainty” before protection starts. Church of Scotland Insurance Company Limited has agreed to abide by the code, which requires that the full policy wording be agreed by all parties before any insurer formally commits to the contract.
Law and Jurisdiction
Unless we agree to the contrary in writing, you agree that this agreement shall be governed by and interpreted in accordance with the Law of Scotland. You agree that the Scottish Courts shall have the exclusive jurisdiction to determine any disputes which may arise in connection with the validity, effect, interpretation or performance of the legal relationship established by this agreement or otherwise arising in accordance with this agreement.
Notes
You are deemed to have accepted these Terms of Business and give your consent for us to operate in the ways described, unless you advise us otherwise in writing within 10 days of either your policy inception date or renewal date. However, your acceptance of these Terms of Business does not affect your statutory rights.
If you wish to download a copy of our Terms of Business please click on this link.