Insurance exemption for freight forwarders comes into force
Date: 25 July 2007
The Insurance Mediation Directive Exemption for Freight Forwarders has come into force, the British International Freight Association (BIFA) notes.
This means that those wishing to offer insurance should be able to get an open cover policy without registering with the Financial Services Authority.
BIFA explains: "There is an exemption for freight forwarders and storage firms where such a firm holds an open cover insurance policy in respect of loss or damage to goods which it transports or stores (or for which it arranges the transportation or storage) and makes available to customers' rights under that policy such that the customer is able to claim directly against the insurer.
"The exemption only applies where the customer is not an individual."
Members who are already authorised by the FSA may continue to remain so, but they will be liable to pay FSA fees unless they cancel their authorisation. Companies must apply to do this using a form that can be found at the FSA website.
They have until August 31st to do this, and the FSA will not contact firms individually to let them know they have this option.
User Comments
No Comments