Insurance: Your Rights
Insurance companies in Ireland are regulated by the Central Bank and must follow strict rules. When they don't, you can fight back.
The Consumer Protection Code
All insurance companies regulated by the Central Bank of Ireland must comply with the Consumer Protection Code 2012. This sets minimum standards for how they treat you, including:
- Acting honestly, fairly, and professionally in your best interests
- Providing clear information about your policy
- Handling claims promptly and fairly
- Providing reasons when declining a claim
- Having a proper complaints process
Claim Rejections
If your claim is rejected, the insurer must provide clear written reasons citing the specific policy terms they rely on. A vague rejection is not enough.
Key right:The burden of proof is on the insurer to show that an exclusion applies. If they can't point to a specific clause that excludes your claim, the rejection may be unfair.
Common grounds for challenging a rejection:
- The exclusion wasn't clearly communicated when you took out the policy
- The insurer is interpreting the exclusion too broadly
- The insurer didn't investigate the claim properly
- The rejection is inconsistent with similar claims they've paid
Policy Cancellations
Insurers can cancel a policy, but they must follow proper procedures:
- Provide reasonable notice (usually at least 14 days)
- State the reasons for cancellation
- Refund any premium for the unexpired period
Watch out:A cancelled policy can affect your ability to get insurance elsewhere. Insurers often ask if you've had a policy cancelled. If the cancellation was unfair, challenge it before it creates a long-term record.
Non-Disclosure and Misrepresentation
Insurers often refuse claims on the basis that you didn't disclose something when you took out the policy. But the law has shifted in your favour:
- You only need to answer questions the insurer asks — you don't have a duty to volunteer every fact
- The insurer must show that the non-disclosure was material — that it would have affected their decision to insure you
- Innocent non-disclosure (you genuinely didn't know or forgot) is treated differently from deliberate fraud
Underpayment of Claims
If your claim is paid but the amount is too low:
- Request a detailed breakdown of how the settlement was calculated
- Get your own independent quotes or valuations
- Challenge any deductions that aren't justified by the policy terms
- Beware of low initial offers — many insurers start low and negotiate upward
Motor Insurance Specific Rights
Motor insurance has additional protections:
- Insurers must provide a quote decline letter if they refuse to insure you
- No-claims bonus belongs to you, not the insurer — you can transfer it
- Section 56 of the Road Traffic Act means the insurer must pay third-party claims even if your policy is void
How to Fight Back
- Request the full claim file via a Subject Access Request — this reveals internal assessments, adjuster reports, and notes that may contradict the official rejection reason
- File a formal complaint with the insurer — starts the 40-business-day clock
- Get independent evidence — quotes, valuations, expert opinions
- File an FSPO complaint after receiving the FRL — the FSPO regularly overturns insurer decisions
FSPO track record: The FSPO upholds or partially upholds a significant portion of insurance complaints. Many cases result in the insurer being directed to pay the claim plus compensation.