Section 59 sets out a procedure for cancellation of an insurance contract.The section requires an insurer wishing to exercise a right to cancel an insurance contract to give the consumer written notice of the proposed cancellation.
FOS has resolved a number of disputes concerning instalment contracts where the consumer has missed an instalment payment.
In these disputes, the financial services provider (FSP) has denied a claim and/or cancelled the insurance contract.
Consumers have an obligation to ensure funds are available to cover any instalments due to an insurer and that these instalments are being deducted.
In this case, at least one instalment remained unpaid for a period of more than 14 days.
Consumers cannot assume that information will be passed on to insurers by related parties.