| Link(s): | CMA letter to Prima Subsidiary Limited about a breach of the Private Motor Insurance Order – GOV.UK CMA letter to Prima |
Context
The CMA has published a letter sent to Prima Subsidiary Ltd (‘Prima’) in relation to a breach of Part 2 of the Private Motor Insurance Market Investigation Order 2015. Part 2 of the Order requires private motor insurers and brokers to provide an explanation of what No Claims Bonus (NCB) Protection is, and what its benefits and costs are. They must do this by providing customers with the NCB Protection Information and Statement specified in the Order in a clear and prominent manner at the time of making an NCB Protection offer.
Key points to note and next actions
Prima breached Part 2 of the Order by:
- understating the cost of the NCB Protection by around £30 on average for some customers (approximately 10,200 – so total refunds in excess of £300k);
- failing to provide the required NCB Protection Statement and Information to some customers;
- providing a non-compliant NCB Protection Statement and failing to provide the required NCB Protection Information to some customers; and
- providing the customers who accepted an oral NCB Protection Offer with policy documents that failed to include the prescribed NCB Protection Information.
The breaches occurred between October 2022 and February 2024 and affected 38,386 customers overall.
Prima has taken steps to end the breach, to prevent a recurrence, and to put things right for affected customers by:
- contacting all affected active and previous customers and offering them a refund;
- formalising both second and third lines of defence regarding compliance with the Order;