First step in the new rules on insurance policies towards improving the rights of consumers will take effect from today

As a first step in the Consumer Insurance Contract Act, the new rules on insurance policies will come into force from today.

Although the contract law was signed into law in January, only now are the first parts of it coming into force.

The following shows how new rules improve consumer and business protection as policy-making takes place:

● New 14 day cooling off period for customers signing up for some new insurance contracts

● Insurers can no longer resolve claims by third parties without the approval of the policyholder.

● It will also deal with the customer in the dispute, including providing them the opportunity to submit the relevant facts.

● The insurance company will need to notify policyholders of the claim result.

● An insurance provider would now no longer be able to deny a claim on the grounds that an applicant is not deemed to have or have had an insurable interest in the subject matter of the contract.

● The rules also set a cap on the amount of a premium payment deal an insurer may maintain or withhold before repairs or invoices are completed.

● Changes the status quo that places the burden and responsibility on the customer to provide information voluntarily.

● Insurance companies are required to notify customers of premium payments over the past five years and any claims made to customers and third parties during the same period.

The rules make it difficult for an insurer to avoid making legitimate claims against the policyholder for reasons unrelated to the accident or loss.

Pierce Doherty, Sinn Fin’s financial spokesman, first introduced the law in the deal three years ago. Doherty and campaigners for insurance reform have criticized the finance minister’s decision not to introduce parts of the legislation until next year.

The rest of the Consumer Insurance Contract Act will not begin until this time next year.