Types of Commercial Insurance Brokers ? FSA and BIBA

Types of Commercial Insurance Brokers ?

A commercial insurance broker deals in different varieties of commercial insurance and sells them to commercial customers including small businesses, home businesses, mid size offices and large corporations. Brokers work in small agencies that are licensed and regulated by the Financial Services Authority (FSA).

Commercial insurance brokers deal with many insurance firms and provide their clients with a wide range of choices for insurance packages, discounts, prices and service. This makes working with brokers convenient for customers. Commercial insurance brokers are regulated by the FSA and are members of BIBA (the British Insurance Brokers’ Association).

FSA and BIBA: The Financial Services Authority (FSA) is an independent, non-governmental body that was given wide ranging powers according to the Financial Services and Markets Act 2000. The FSA regulates most financial services, markets and firms. It even has the authority to take action against firms that fail to comply with the standards set by FSA.
BIBA: The British Insurance Brokers’ Association (BIBA) is an organization that represents the interests of insurance brokers, intermediaries and customers. BIBA has partner members from the leading companies in the insurance industry. The members handle more than three quarters of UK’s industrial, commercial and consumer insurance business. BIBA also provides training, schemes, facilities, technical advice and regulation guidance.

Required Car Legal Documents

Failing to produce an insurance policy is a legal offense and can lead to penalties like :
Prosecution : If you do not furnish the documents within the stipulated time period, you can be prosecuted in a court of law.
Issuing an HORT/1 : HORT/1is a notice issued to drivers when they are unable to produce the car insurance policy and their driving license. Once the producer or HORT/1 is issued, the driver can produce the required documents within a week at the police station.

Required Car Legal Documents: Besides a valid car insurance policy, the driver must possess other legal documents like a certificate of insurance, cover note and a driver’s license.

Certificate of Insurance : A legal document issued by a car insurance firm or an independent car insurance provider. It proves that the insurance document is in effect. The document summarizes the coverage type, insurance benefits and the names of those insured. It also includes the date and time when the certificate will come into effect.

Insurance Policy : A written contract between the insured and insurance company. It includes the car insurance plan, its coverage, exclusions, benefits, terms and conditions, expiry dates and rates assessed.

Driver’s License : A legal document that permits driving a vehicle on public roads. It is obtained after passing a driver’s test.
Cover Note : It is a certificate issued by a car insurance company giving the insured a provisional insurance policy until the issuance of the actual policy. The cover note becomes invalid when you obtain your car insurance policy.

Third Party Insurance

Car Insurance Laws

The first UK car insurance law dates back to 1930 which stipulated that any person who drives a car needed to possess at least third party personal injury insurance. Subsequently, the car insurance law came to be known as the Road Traffic Act (RTA), which asserts that :

Car owners are completely responsible for their car (even when someone else drives their car and is involved in an accident or injury).
The policy holder cannot allow any other person to drive the car unless they do not have a car insurance policy.
It is compulsory for vehicle owners to have at least third party insurance against liabilities.

Third Party Insurance, according to RTA, is a policy that car owners need to be insured for liabilities such as possible injuries to others. They also require the driver to be insured for possible damage to another person’s residence due to the use of a car on a public road or in other public places like parks, residential areas and private properties.

The terms and conditions documented in your car insurance policy holds a legal value in the court of law. According to the motoring laws of UK, the authorities such as the traffic police can request a driver to show car insurance coverage when needed. It should be noted that not producing the insurance policy is a legal offence.
It provides legal proof that your car has been insured and that you are wholly responsible for it.