The Contract Certainty Code of Practice 2018 is a set of guidelines created by the Association of British Insurers (ABI) to reduce ambiguity in the language used in insurance policies. By implementing this code, insurers are working towards ensuring that policyholders have a complete understanding of the terms and conditions of their insurance contracts.
The Code of Practice outlines six key principles that insurers should follow when drafting and issuing policies. These principles include transparency, clarity, and accuracy in language, as well as a commitment to timely delivery of policy documents. Insurers must also acknowledge and resolve any disputes that may arise promptly and fairly.
One of the main goals of the Code of Practice is to reduce the number of disputes between insurers and policyholders by improving communication and increasing transparency. By ensuring that policyholders understand the terms of their contracts fully, they can make informed decisions about what level of coverage they require.
The Code of Practice also includes guidance on how to handle claims, including providing clear and concise information about the claims process and keeping clients informed of the progress of their claims.
Adhering to the Contract Certainty Code of Practice 2018 can benefit both insurers and policyholders. For insurers, it can lead to improved customer satisfaction and a reduction in the number of disputes. Policyholders, on the other hand, can have greater confidence in their policies, knowing that they have been written in a clear and transparent manner.
Overall, the Contract Certainty Code of Practice 2018 is an important initiative that demonstrates the insurance industry`s commitment to providing clear and transparent policies to its clients. By following these principles, insurers can build trust and improve customer satisfaction, leading to a better overall experience for all involved.
