Govt confirms insurance exemption for freight forwarders
Date: 09 August 2007
The government has confirmed the enforcement of the Insurance Mediation Directive Exemption for freight forwarders.
Now freight forwarders should be able to get an open cover policy to provide their clients with insurance, without having to register with the Financial Services Authority (FSA).
The British International Freight Association (BIFA) notes that those freight forwarders who are authorised by the FSA will continue to be charged unless they apply to cancel their authorisation. They can do this using a form on the FSA website, and it must be done within six weeks from July 20th.
The exemption only applies for insurance provided for commercial customers, not private individuals.
BIFA director general Colin Beaumont welcomed the legislation and suggested it could be extended to retail customers in the future.
"I am delighted that our campaign to secure an exemption from the requirements of the Insurance Mediation Directive for freight forwarders, which has involved a change in UK legislation, has been successful," he said.
"Now, we are investigating the establishment of a Consumer Code of Practice, which, subject to the approval of Ministers, could extend the exemption to freight forwarders' retail customers at a later date."
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