All you need to know to complete your CMA return
Posted on: 20 January 2017
All you need to know from Home & Legacy to help you complete your CMA return by 1st February 2017.
As brokers selling motor insurance will know, the Competition and Markets Authority, Protected No Claims Discount (CMA PNCD) Information order came into force on 1st August 2016. This ensures that brokers providing motor insurance to clients provide them with information about the costs and benefits of purchasing no claims discount (NCD) protection.
All clients considering buying private car insurance where NCD protection is available as an option, have to be provided with specific information to allow them to make an informed decision about their cover:
- The cost of NCD protection.
- The average percentage discount scale awarded by the insurer to policyholders in the previous year.
- The effect that making a claim will have on the policyholders NCD, with and without NCD protection. This has to be provided for each individual policyholder.
- That the premium may still increase even if they have bought NCD protection.
The CMA PNCD also requires brokers to complete an annual compliance statement. The next return needs to be completed by 1st February 2017 and include copies of the average NCDs for all of the insurers you trade with.
Below is all the information from Home & Legacy that you will need to complete yours:
All the information for your clients will continue to be provided within our quote and renewal documentation. Premier Motor is underwritten by Aviva Insurance Limited. The NCD table for Premier Motor, which you will need to include within your return to the CMA, has been updated to reflect the average figures for 2016 as follows:
|NUMBER OF YEARS NCD||AVERAGE NCD IN 2016|
|One year NCD||36%|
|Two years NCD||39%|
|Three years NCD||41%|
|Four years NCD||44%|
|Five years or more NCD||49%|
The CMA order does not apply for this product, so a return will not be required. Ultimate Motor includes a guaranteed NCD as standard, for all policyholders.