No Claims Discount (Bonus) – Reminder to send in your annual return in January 2021

YOUR COMPLIANCE MATTERS – No Claims Discount (Bonus) – Reminder to send in your annual return in January 2021

Relevance:                   All firms selling Private Motor Insurance with protected NCB.

Action required:           Submit your next Compliance Declaration to the CMA before 01.02.21

You will remember that, from the 1 August 2016, the Competition & Markets Authority (CMA) Private Motor Insurance (PMI) Order came into force, in relation to No Claims Discount (NCD) protection. This Order affects all policies written as private car products (excluding motorcycle and classic car) where No Claims Discount (NCD) protection is offered (unless such protection is integral to the product).

If you have not done so already, you need to submit your annual declaration by 01.02.21, along with NCD tables for the insurers that you arrange private car business with, where NCD protection applies (as mentioned, this does not apply to motorcycle and classic car).

The statement itself is simple enough and is included below. This needs to be emailed to the CMA before 01.02.21 at pmi.order@cma.gov.uk. There is now no option to submit this online.

Please do not send the return to us.

The statement needs to be supported by tables confirming the average NCB provided by each insurer.

Please get in touch if you need any help. Otherwise, you need to ensure that you have submitted the declaration before the deadline.

Template PMI Compliance Statement

Annual PMI Compliance Statement for [insert business name]

[I/We], [insert your name(s)], confirm on behalf of [insert business name] that during the report period to December 2020, [insert business name] [has][have] complied with The Private Motor Insurance Order 2015 (the Order).

The Average NCB Discount PMI Providers are displaying to consumers, from 1 February 2021, in its NCB Protection Information, is listed in Annex 1.

FOR AND ON BEHALF OF [NAME OF BUSINESS]

Signature: .........................................................

Name: ...............................................................

Title: .................................................................

Annex 1: Average NCB Discount[s]

PMI Insurer: [Insert name, or if appropriate insurer or product]

Table of Average NCB Discount

[Insert the table[s] of Average NCB Discount prescribed by paragraph 1(b) of Schedule 2 to the Order and required to be provided to prospective purchasers of a PMI Product from 1 February 2021.

[Repeat as appropriate for each PMI Insurer and sub-set of PMI Products if appropriate]