FCA publishes general insurance Notice of Undertaking

The FCA has published a Notice of Undertaking under the Consumer Rights Act 2015 from ETA Services Ltd in relation to a Cycle Insurance Policy.

The FCA was concerned that the policy in question had two terms that appeared to contradict each other: one term indicated that cover would not be provided in the event of theft ‘where the bicycle has not been secured through its frame using an approved lock’ but elsewhere in the policy a term excluded cover if the bicycle ‘had not been secured through its frame to an immovable object’, without reference to an approved lock.

Accordingly the term in the policy setting out exclusion of cover where an approved lock had not been used was insufficiently transparent for the purposes of the CRA.

The FCA noted that the firm had fully cooperated; they had changed the term in the policy and committed to ensuring that the ‘old’ terms continued to be applied in a fair way.

Emma Radmore