Policywave Terms of Business Agreement

Effective  – 01 October 2024

About Us

Policywave Limited is a private limited company registered in England and Wales number 10218295 whose registered address is The Old Courthouse, Hughenden Rd, High Wycombe, Buckinghamshire, England, HP13 5DT. Policywave are authorised and regulated by the Financial Conduct Authority (FCA 812428). You can check these details on the Financial Services Register by visiting the FCA’s website www.fca.org.uk/register or by contacting the FCA on 0800 111 6768.

Our Services

We are an independent insurance intermediary. We place insurance and insurance–related services with several insurance companies, not just one, and with several insurance-related service providers.

When you appoint us to work for you, we become your agent. This means that we are acting in your interests and upon your instructions, to secure the agreed outcome for you. There are occasions where we undertake certain duties on behalf of an insurer (for example, we sometimes issue policy documentation), and when this takes place, the legal position is that we are acting on behalf of the insurer only for that specific task. We will clearly identify these circumstances to you so that you are correctly informed. So that we avoid any perceived conflict of interest or questions of propriety we do not hold agreements with insurers to settle claims.

We will consult with you about the risks that you face. We will talk with you about how you might insure against those risks. For those risks that you want to insure against, we will take your instructions and endeavour to obtain quotations. We will consider solvency of insurers, premiums, policy cover, and any other factors we consider relevant when deciding which options to recommend for you. We will draw to your attention any onerous or unusual terms as soon as we are made aware of them.

We will provide you with relevant documentation as soon as possible. Where this documentation is produced by insurers, delays may be experienced. Specimen or standard policy wordings will be made available to you at your request.

When you tell us of an incident where you want to claim under an insurance policy we have arranged, or we have agreed will become part of the portfolio of policies we manage on your behalf, we will alert the relevant insurance company. Where applicable, we will produce for you a claim form. We will guide you through what you need to do to make a claim. We will submit your documentation to insurers. We will act as your agent to help you negotiate with a view to achieving a satisfactory outcome for you in accordance with your policy wording. If an incident cannot be the subject of a claim (if it is not covered) then we will tell you as soon as we become aware.

If you reasonably disagree with an insurer’s decision following a claim that you have made, we will help you to complain. We may recommend that you instruct a solicitor, and if you do, this will be at your own expense.

When policies that we have arranged become due for renewal, we will prepare quotations in accordance with your revised instructions. In the absence of revised instructions, we will prepare quotations on the existing basis. We will discuss quotations with you in advance of renewal to ensure that you have enough time to consider our terms or make an alternate arrangement. If insurers do not offer renewal terms in good time, then we will endeavour to secure an extension of cover for you. If it is likely that cover will not be available after expiry of the present period of insurance, then we will let you know of this possibility as soon as we think that it is likely.

Please note that if this agreement is terminated, we will not prepare renewal quotations for you and cover will expire. You will need to make an alternate arrangement.

These are our core services. We may undertake additional specific work on your behalf by agreement. In this event, these Insurance Broking Terms of Business shall continue to apply in respect of additional work unless otherwise agreed in writing.

Providing Information to your Insurer

Your insurance is based upon the information provided to the insurance company. Unless otherwise indicated by the specific insurer underwriting your policy, the following circumstances apply.

For Consumers (individuals buying insurance wholly or mainly for purposes unrelated to their trade, business or profession) this means that you must take reasonable care to answer all questions fully and accurately. Once cover has been arranged, you must immediately notify us of any changes to the information that has been provided to your insurers. Failure to provide accurate and up to date information may invalidate your insurance cover and mean that a claim may not be paid.

All other customers must present the risk (i.e. the subject matter of the proposed insurance) fairly. This means that you must disclose to insurers, before arranging or renewing your insurance policy, and throughout the policy period, anything that might influence the judgement of an insurer in fixing the premium, setting the terms or determining whether they would take the risk. If you are uncertain whether anything is material, you should disclose it. To identify what must be disclosed, you are obliged to carry out a reasonable search before presenting the risk to insurers.  This includes (but is not limited to) consulting with all senior managers (anyone who plays a significant role in the making of decisions about how your activities are to be managed or organized, regardless of whether that individual is a member of your board or is formally in a management role). You must also consult with anyone who has knowledge about the risk to be insured. Failure to disclose material information may invalidate your insurance cover and could mean that a claim may not be paid, or an additional premium may be incurred.

All statements and facts disclosed on proposal forms, statement of facts, claim forms and other documents should be full, true and accurate. Where forms are completed on your behalf you must check them for accuracy and completeness before signing them. You must always read the declaration and make sure you understand it before you sign. You have a duty to be proactive and provide up to date information to us if any documentation you provide is due to expire during the term of the policy and we will not be held responsible if your policy is cancelled as a result of you not providing this information.

Your Instructions

We will act in accordance with your reasonable instructions to the best of our abilities. If we are not substantially able to achieve what you want us to achieve or if it is not possible to achieve what you want, then we will tell you. We will tell you what we can achieve.

You may instruct us by fax, by e-mail, by telephone or during face- to-face meetings. We cannot guarantee that your instructions have been received unless we have acknowledged them in writing. We reserve the right to refuse instructions, but if we do, we will inform you. Communications using the Internet are not completely secure and may spread harmful viruses. If you would prefer us not to use e-mails, you must inform us.

Please note that Office Hours are Monday to Friday, 9.30am to 5.30pm and Saturday 9.00am to 1pm. The office is not open for business on statutory (“Bank”) holidays. There may be a delay in responding to instructions if they are received outside of Office Hours. We do not ordinarily issue receipts or acknowledgements unless specifically requested by you in writing.

Limitation of Liability

In the event of any breach of these terms and or in the event of any representation, statement or tortuous act or omission including negligence arising under or in connection with all contracts between us then the following provisions set out our entire financial liability (including any liability for the acts or omissions of our employees, agents, and sub-contractors) to you. Nothing in these terms excludes or limits our liability for death or personal injury caused by the Company’s negligence, fraud, fraudulent misrepresentation, or regulatory obligation.

We shall not be liable to you for any indirect or consequential loss or damage, these may be losses that are not reasonably foreseeable, (whether for loss of profit, loss of business, depletion of goodwill or otherwise), costs, expenses, or other claims for consequential compensation whatsoever (howsoever caused) which arise out of or in connection with the services we provide to you.

Our total liability in contract, tort (including negligence or breach of statutory duty), misrepresentation or otherwise, arising in connection with the performance or contemplated performance of our services to you (“Claim”) shall be limited to £2,000,000 (two million).

If you are not a Consumer (as defined by the FCA) and our professional indemnity insurers refuse to indemnify us for any claim made by or on behalf of you then our total liability in relation to that claim shall be limited to £1,000,000 (one million pounds).

Liability for Directors, Officers, or Employees

You acknowledge and agree not to make any claim personally against any employee, director or officer arising out of the work and services provided under this agreement. This clause does not in any way limit or affect our liability to you as detailed in the limitation of liability clause.

Our Remuneration

We will provide you with separate premiums for each of the individual products and services that we are offering.

Premiums can be paid by Card, or Direct Debit for which there may be instalment charges. Full information about payment options will be given when we discuss your insurance in detail.

We usually receive a commission from an insurer when placing your business and from a finance company when arranging finance for you. We occasionally receive additional remuneration from insurers, finance providers and other associated business partners for business we place with them. If you are involved in an accident, we may refer you to one of our own recommended Solicitors. We may receive a referral fee if you proceed with our advice. Should you wish to know what this fee is, please make your request in writing. You have the right to use your own solicitor. Commission may be paid on individual policies and or on a whole account basis.

A refund of the premium element net of our remuneration may be made by insurers. In this event, any refund will be returned to you without unreasonable delay and subject to the administration charges set out below.

Where we arrange cover which is subject to no commission or a low commission payment from insurers, we may charge a higher arrangement fee than mentioned below. If this is the case, we will always advise you of the actual amount when we are providing you with a new or renewal quotation. Likewise, if we need to charge a higher or additional fee at any other time (contrary to the amounts below) then we will specify the amount of that fee (and explain the nature of the fee) prior to the policy inception, or renewal of that policy.

All our fees are non-refundable with the exception of our New Business and Renewal Policy fees which are refundable within the 14-day cooling off period, but which are then replaced with a cancellation fee. All our fees may be subject to change. Where this is the case, you will always be advised of the actual fee in writing and before you make your decision to purchase insurance from us. Should you choose to cancel an Insurance policy after giving instructions to place cover or if you wish to terminate our appointment as your broker before policies have expired then the commission and/or fee will be deemed to have been earned in full and no refund will be paid in this respect.

A list of all our fees and charges are detailed on the below. Please read these carefully as by taking out the policy you are agreeing to accept and understand the charges we make for our services.

* For further information on Non-Disclosure Fees please refer to our Non-Disclosure fee section.

** For further information on Cancellations please refer to our Cancellation section.

*** For further information on Refunds please refer to our Refunds section.

Cancellation – General Terms (applicable on all cancellations)

You have the right to cancel your policy at any time by putting it in writing to us. The cancellation cannot be backdated and therefore the policy will only be cancelled from the time we receive your advice. Any refund due will be returned via the original payment method. At the time of cancellation if a claim has been made or has not been settled in your favour (even if you are within the 14-day cooling off period), no return of premium will be given and you will be required to pay the full balance of premium if you have not already done so. A full refund of premium (subject to confirmation no claims have been made) are given on certain ancillary insurance products (not limited to Legal Expenses, Replacement Vehicle, Breakdown Cover, Public Liability Cover, Excess Waiver) within the 14-day cooling off period. After the 14-day cooling off period no refunds are usually given on these products, however, please check the individual policy wording for each product, for clarification on this.

Please read our section below regarding non disclosures fees. If these are charged and you decide to cancel these are payable in addition to our cancellation fees.

Cancellation – Within 14 Days

Once you have instructed us to proceed with a policy, you have a statutory right to cancel the policy within 14 days. This is called the cooling off period. If you decide to cancel at any point between instructing us and the end of the cooling off period, we are allowed by our regulator (and will retain) an amount that reflects our administrative costs of arranging and cancelling the insurance. This is applicable, even if the policy has not yet commenced. This charge is £50.00. For clarity, any New Business or Renewal Fee will be refunded and a Cancellation Fee of £50.00 will be charged instead. In addition, the insurer will also charge a minimum cancellation fee of £28.00 during this 14-day period. Please note that if the insurance cover is effective (started), Your insurers may also charge a pro rata amount of the annual premium (for the amount of days you have had on cover), up until the end of the cooling off period. Please refer to their policy summary or your policy document for further details. Therefore, once you have advised us you wish to proceed with a policy (and even during your statutory right to cancel) you will be charged a minimum of £78.00 to cancel the policy (even if the cover has not yet started). By taking the policy out, you confirm you have read these terms and agree to them.

Cancellation – Outside of 14 Days

The majority of our insurance contracts are 12-month agreements and there are penalties for cancelling some policies early. We strongly recommend that you contact us prior to instigating cancellation, so that we can inform you of any outstanding balance (or what any refund you are likely to receive) before cancelling. This will allow you to make an informed decision (including the financial implications), before cancelling. Once you have decided to cancel, we may ask you to put your request in writing and will not cancel your policy until we receive this. Please note that we or the insurer also reserve the right to cancel any policy you have with us if the premium or documentation (requested by us or the insurers) remains outstanding on any policy you have with us. Any amount owing following a cancellation must be settled by you within 14 days, failing which we reserve the right to pass the amount owed to an outsourced debt collecting facility to deal with, which may result in an increased amount being owed. Please note that if your policy is cancelled (by you or us), you may owe us money. This is highly likely if you are paying for your policy on Direct Debit.

If you wish to cancel outside of the 14-day period, you may not receive a pro rata refund of premium from your insurance company. We will retain part of the refund that we receive from your insurer. The part we retain is called commission. The commission we retain was originally paid to us for placing your business with that insurer. We retain this because our costs associated in setting up and administering your policy were based on a 12-month commitment (and on the full commission paid to us by your insurer at the start of the policy). In addition, we also charge a cancellation fee (as detailed above), which reflects our administrative costs in cancelling the policy (which were not considered when setting the insurance policy up for you).

Non-Disclosure Fee

All our costs and charges are estimated and calculated based on the work we are aware that we have to undertake in servicing your policy. However, where you have failed to disclose (intentionally or otherwise) claims or convictions which means that additional time is needed to correct information, we charge a non-disclosure fee as this time was not factored into administering your policy. If you decide to cancel as a result of not initially disclosing something to us correctly (because you decide that the premium we are now offering is no longer competitive), even if this is within the 14-day cooling off period, we reserve the right to retain this non-disclosure fee for the additional time spent liaising with both you and the insurer to ascertain the correct information and securing you a revised premium. Therefore, once you have advised us you wish to proceed with a policy (and even during your statutory right to cancel) you will be charged the non-disclosure fee, if you fail to mention to us something that we have asked you at the time you asked us to set up the policy. This charge will apply in addition to all other charges.

Refunds

When setting up your policy we are paid a percentage of that policy by your insurer. When you are provided a refund by the insurer this refund also includes the amount that was originally paid to us when you set up the policy. We retain this amount (called commission) because our costs in setting up and administering your policy are calculated at start and based on the total amount we are expected to earn. Our commission amount varies dependent on insurer and Policy Type but will never be more that 25% of the original new policy premium. Therefore, any deduction from the refund will never be more than 25%.

Please note that all our fees and charges are detailed under the “Our Remuneration” section of this document and are deducted after receiving the refund from your insurer. These charges are in addition to the cancellation charges specified by your insurer which can be found in their policy wording provided to you at the inception of the policy.

Complaints

It is our intention to provide a high level of service at all times. However, if you have reason to make a complaint about our service you should contact the director at the above address or ring 0333 332 7750. Alternatively, you can email us at complaints@Policywave.co.uk. You may be entitled to refer it subsequently to the Financial Ombudsman Service.  Further information is available at http://www.financial-ombudsman.org.uk/. The FOS Consumer Helpline is on 0800 023 4567 (free for people phoning from a “fixed line” (for example, a landline at home) or 0300 123 9123 (free for mobile-phone users paying monthly charge for calls to No’s starting 01 or 02). Alternatively, you can contact them at Financial Ombudsman Service, Exchange Tower, Harbour Exchange Square, London, E14 9SR. http://www.financial-ombudsman.org.uk  A full copy of our complaint’s procedure is available on request.

How to claim

Please refer to your policy summary or your policy document if you need to notify a claim.  You should contact the insurer direct as soon as possible using the contact details provided.  If in doubt about who you should contact, please contact us immediately on 0333 332 7750.

Protecting your Personal Data

We are the Data Controller for data you provide to us. We need to use your data to arrange your insurance and associated products and for marketing purposes (please let us know if you would prefer not to receive marketing information from us). You are obliged to provide information without which we will be unable to provide a service to you. We may pass your data to other organizations, such as insurers, auditors, external consultants, credit providers, banks, financial transaction processors, crime and fraud prevention agencies and databases and regulators. We process all data in the UK but where we need to disclose data to parties outside the European Economic Area (EEA) we will take reasonable steps to ensure the privacy of your data. To protect our legal position, we will retain your data for a minimum of 7 years. We have a Data Protection regime in place to oversee the effective and secure processing of your data. You can request copies of the data we hold, have it corrected, sent to a third party or deleted (subject to our need to hold data for legal reasons). If you wish to complain about how we have handled your data, you can contact us, and we will investigate the matter. If you are not satisfied with our response or believe we are processing your data incorrectly you can complain to the Information Commissioner’s Office, Wycliffe House, Water Lane, Wilmslow, Cheshire SK9 5AF. Tel: 0303 123 113.

Client Money

Policywave Limited do does not hold client money. Policywave hold a trust account. Any money paid by you to Policywave is held in this trust account which Policywave control as an agent on behalf of the insurer. Once paid into this account, it is deemed to have been received by them. Under the terms of the business agreements, we hold with our insurers this is referred to as “Risk Transfer”. In accordance with our agreements with the insurers any interest earned on client money held by us will be retained for our own use, rather than paid to you.

Insurance Premium Tax (IPT)

Your premium detailed in the policy will include IPT at the prevailing rate. Should the rate of IPT be amended by the Government, your premium will be amended by the insurer to reflect the change. Some polices are subject to Value Added Tax (VAT) not IPT and should the rate of VAT be amended by the Government; your premium will be amended by the insurer to reflect the change.

Compensation Arrangements

We are covered by the Financial Services Compensation Scheme.  You may be entitled to compensation from the scheme if we cannot meet our obligations.  This depends on the type of business and the circumstances of the claim.  Most Insurance contracts are covered for 90% of the claim, without any upper limit.  Compulsory insurances (for example, motor insurance and employers’ liability insurance), are covered for 100% of the claim, without any upper limit.

Further information about compensation scheme arrangements is available from the FSCS on 020 7892 7300 or by visiting http://www.fscs.org.uk/

Solvency

We do not guarantee the solvency of any insurer we place business with.  We do not accept liability for any losses you may incur arising directly or indirectly from the financial failure or insolvency of any insurer. You may have a liability for the premium, whether in full or pro-rata where a participating insurer becomes insolvent.

Payment Options

We will provide you with full details of all the payment options available to you when we provide you with your insurance premium. If you choose to enter in a finance arrangement, this will be subject to interest charges that we will confirm to you when providing the full details. Importantly, the arrangement you will enter will be with the finance company not us. It is an entirely separate contract irrespective of the insurance contract. In the event of your failure to meet with the contractual obligations regarding payment the finance provider could approach the insurer to seek a termination of the insurance contract to recoup their outstanding finance arrears. You will be liable to pay their costs and charges if you do not keep up your repayments and cover is cancelled under your policy. This is because the agreement is between you, the policyholder, and the finance company direct, not us or the insurer.

Please note that we use Premium Credit Limited or Close Brothers for the provision of premium finance facilities and select the provider that we believe best suits your requirements.

Please Note: Your policy cover will cease if you fail to keep up payments on an instalment agreement or premium finance facility related to it.

Legal Effect

This is our standard Terms of Business Agreement upon which we tend to rely. For your own benefit and protection, you should read the terms very carefully. If you do not understand any point, please ask for further information or clarification.

These Insurance Broking Terms of Business supersede any previous Insurance Broking Terms of Business or any previous informal arrangement. They should be read in conjunction with other correspondence that you may have received from us. Together, they set out exclusively the basis on which we work for you.

These Insurance Broking Terms of Business apply to existing and future work, which we do on your behalf, unless we agree otherwise in writing. We will give you notice of any change to these terms, which will then apply to any subsequent instructions.

These Terms of Business shall be governed by English Law and shall be subject to the exclusive jurisdiction of the English Courts.

Key Features you must read and agree to if you are paying via Direct Debit

• In order to pay via Direct Debit, you must be the account holder of a UK bank/building society account and be the able to authorise debits from this account.
• If you pay by Direct Debit, you will pay more overall compared to paying for the policy upfront.
• Policywave use Premium Credit Limited (hereon in referred to as “PCL”) as their preferred Finance Lender. Policywave act as a credit broker, and we may receive a commission for introducing customers to PCL. Credit is subject to status, and they may use a credit reference agency that leaves a record of the search or other information about you to conduct credit and anti-money laundering check. This record will be visible to third parties If your application for credit is successful, PCL will pay the balance of your insurance premium and you will be obliged to repay this credit by monthly Direct Debit. You will also be required to sign a credit agreement with PCL. If you are happy to proceed with the credit agreement, please make sure you sign the Credit Agreement as soon as possible. This can be done online. A £25 charge will be incurred if Premium Credit are required to write to you to remind you to sign your credit agreement.
• The transaction charge for paying on Direct Debit is dependent on the number of instalments you are making to PCL and this is detailed on the payment options that you have been quoted to you via letter or over the phone.
• If you default on any payments, you will also be charged £25, this is charged by PCL, not Policywave. Any requests to change your payment date can be made after the first payment has been taken, but you will need to contact PCL directly to do this.
• The first payment taken by PCL from you includes a facility charge of £5.00.
• If your credit application to PCL is approved you will receive your information pack within the next 14 days. You will find your monthly repayment schedule in your information pack. Please read the pack carefully to ensure you understand the terms and conditions and it is right for you.”
• You can make a full or partial repayment at any time subject to the terms in the Credit Agreement.
• All Direct Debits are protected by the Direct Debit guarantee. If you require this to be read to you, please contact the office before proceeding. Otherwise, you will be sent the details in the welcome email that is sent out to you by PCL.
• Finally, you have 14 days to change your mind, if you decide you no longer wish to pay using PCL. Please contact us and any payments you have already made will be refunded to you. We will require confirmation on how you wish to pay for your insurance policy. If you decide to cancel your finance agreement after 14 days, you may have to repay any money owed to PCL.
• The first payment will come out of your bank account 30 days after the inception date or renewal date of the policy. It will then be the same date each month after that. Once the first payment has been successfully taken, the payment date can be changed. You will need to contact PCL directly. Please note that they may charge you to change this.
• Policywave would like to remind you that you are proceeding with a 12-month insurance policy which provides disproportionate refunds should you cancel it early.  You are reminded that this means unless you make an overpayment at any point during your PCL agreement, you will always owe money if you are paying via Direct Debit and cancel your policy before all payments to PCL are made.
• Please note that cancelling your Direct Debit does not cancel your insurance policy. The Direct Debit  agreement with PCL is separate to the insurance contract that you make with your insurer. Please therefore contact Policywave before cancelling your Direct Debit for whatever reason, so that we can advise you of the most cost-effective option to meet the goal you are trying to achieve.
• If after reading this, you have already decided you do not wish to proceed with this credit application with Premium Credit, cannot agree to the terms stated above or you wish to hear more about your protection under the Direct Debit Guarantee, please contact Policywave before proceeding further

In order to comply with the regulation under 4.2.5 of the Consumer Credit Sourcebook (CONC 4.2.5) which states that a firm must explain the key features of a regulated credit agreement to enable the customer to make an informed choice, you can confirm that that you have received the following information in  relation to the proposed credit agreement in this renewal invitation.

• All Fees and charges (including the facility fee).
• The APR Payable.
• Any Default fees associated with taking out this Credit Agreement.
• That Credit checks will be conducted before any credit line is issued to you.
• That your right to withdraw from this Credit Agreement has been explained.

 Paying for your Policy via our secure payment link

For your own safety and protection, we will never take your card payment details over the telephone. If you do contact the office, you will be asked to listen to the terms and conditions we have around cancellation and Disclosure. Both these are detailed on our terms of business agreement (TOBA), so if you have read this and would prefer to make a payment rather than contact us, we now provide a secure payment link on which you can make payment. Before you can make payment, you will be asked to confirm you have the Terms of Business Agreement, which amongst other things stipulate the costs of cancelling once payment has been made (even if the policy hasn’t commenced) and also confirm that the details you have supplied or we have on record are correct (especially of you are renewing as things may have changed since last year).

Provided you have read this document fully, (and in particular your Renewal or Quotation letter if you are paying on Direct Debit which includes the key features we need to disclosure if you are planning to enter into a credit agreement and are happy to agree to our Terms of Business (particularly around Cancellations and Disclosure) and (if you are renewing) none of your details have changed (or you do not require any amendments to be made to the current policy), you can continue to make this payment. By doing so, you are confirming you have read, understood and agree to all the information you have been given. If you cannot agree to anything within this documentation, have any further questions, or require any further information before making a decision to proceed with this policy, you should not proceed to make payment and contact the office on 0333 332 7750, where we can then answer any questions or queries you may have and then process any instructions before sending you the secure link to make full payment or pay the required deposit required.