Dáil Éireann Debate, Tuesday - 21 May 2024
74. Deputy Pearse Doherty asked the Minister for Finance to outline the provision in insurance law with respect to consent to settle, whereby policyholders must provide consent where an insurer wishes to make a settlement with respect to a third-party claim; and if he will make a statement on the matter. [22789/24]
Amharc ar fhreagraThere is generally a condition in insurance policies that, under the terms of the contract, an insurer may assume control and deal with the settlement of any claim. This is the contractual position, and there is generally no requirement that an insurer seek a policyholder’s approval before settling a third-party claim.
As the Deputy will be aware, the duties of insurers with respect to claims handling are outlined in Section 16 of the Consumer Insurance Contracts Act 2019, which requires that an insurer shall “notify a consumer of a claim as soon as practicable after the insurer is informed of the claim”. This requirement took effect from 1 September 2020, as provided for under the Consumer Insurance Contracts Act 2019 (Commencement) Order 2020 (S.I. No. 329/2020).
Additionally, under the Consumer Protection Code from the Central Bank of Ireland, insurers must advise the policyholder of “the final outcome of the claim including the details of the settlement”. Where applicable, the policyholder must be informed that the settlement of the claim will affect future insurance contracts of that type.
It is particularly important that insurers engage with their policyholders in the event of a claim, to ensure that they correctly ascertain all the facts of the case and can challenge the claim should sufficient evidence be presented to allow them to do so. While the Central Bank of Ireland does not adjudicate on individual consumer complaints, the Code sets out how a regulated entity must engage with a consumer on complaints, which includes complaints around the handing of insurance claims.
In situations where a person is not satisfied with the actions of an insurance provider in terms of the settlement of a claim, it is advisable that that person make a complaint to the firm's internal complaint resolution process. The Consumer Protection Code requires that if after 40 days the complaint has not been resolved to the customer’s satisfaction, the regulated entity must inform the consumer that they may refer their complaint to the Financial Services and Pensions Ombudsman (FSPO).
