Insurance Contracts CP - Law Reform Commission

the Provider could not provide the necessary evidence to rebut the claim being made. It would
therefore be in the interests of the Providers to consider retaining appropriate records –
including, where necessary, ‗phone recordings relating to such contractual commitments – for
the period within which a person can complain to the Ombudsman i.e. six years.‖ 19
(4) EU law and Formalities
7.14 The First Council Directive of 24 July 1973 on Direct Insurance other than Life Assurance
(Directive 1973/239/EEC) as amended, 20 and Directive 2002/83/EC concerning Life Assurance, 21 provide
the main regulatory provisions that have an impact on how insurance companies are to meet Community
transparency standards generally. However, while Directive 2001/83/EC provided detailed provisions in
Chapter 4 (Contract Law and Conditions of Assurance) on cancellation rights and information to be
provided to policy holders in relation to life assurance, it is only the Distance Marketing of Consumer
Financial Services Directive 22 that provides a horizontal set of information disclosure requirements and a
cancellation right for consumers in respect of financial services; the Directive specifically defines a
financial service to include an insurance business and insurance is defined so as to include life
assurance. As a basic rule the information to be provided must:
have a commercial purpose which is made clear;
be provided in a clear and comprehensible manner appropriate to the means of distance
communication used;
with due regard, in particular, to the principles of good faith in commercial transactions;
satisfy principles governing the protection of persons unable to give their consent, such as
minors. 23
7.15 The Directive has been transposed into Irish law by the European Communities (Distance
Marketing of Consumer Financial Services) Regulations 2004 (S.I. No. 853 of 2004) and Schedule 1 of
the 1994 Regulations provides that the supplier must provide a consumer with the following information
prior to entry into a distance contract:
(a) identity, main business and address of the supplier;
(b) if the consumer resides in another Member State, name and address of the supplier‘s
representative in that State;
(c) name and address(es) of the advisor or agent with whom the consumer may be
dealing and a statement of capacity;
(d) the supplier‘s registered company details, if applicable;
(e) details of any relevant supervisory authority under any applicable authorisation
scheme;
(f) details of any membership of a professional body regulated by law;
(g) VAT registration details;
(h) a description of the main characteristics of the financial service;
(i) total price payable including fees;
(j) a relevant notice about risks and performance fluctuations;
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Case 5, December 2007. See also Case 9 of June 2007.
See the Consolidation of 2007- 01- 01 on EUR – LEX.
OJL 345, 19.12.2002, building on Directives 1979/267/EEC, 1009/619/EEC and 92/96/EEC. The principal
regulations transposing the life assurance directives are SI 360 of 1994.
2002/65/EC, OJL 271, 9.10.2002.
Directive, Article 2(2).
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