GovWire

Correspondence: CMA letter to Prima Subsidiary Limited about a breach of the Private Motor Insurance Order

Competition Markets Authority

November 20
10:00 2024

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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.

Prima breached Part 2 of the Order by:

  • understating the cost of the NCB Protection by around 30 on average for some customers

  • 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

  • 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 16 February 2024 and affected 38,386 customers overall.

Updates to this page

Published 20 November 2024

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