Terms of Business 1 August 2021
CENTRAL BANK OF IRELAND AUTHORISATION:
We are authorised and regulated by the Central Bank of Ireland (Ref C1305) as an Insurance Intermediary under the European Union (Insurance Distribution) Regulations 2018, an Investment Business Firm under Section 10 of the Investment Intermediaries Act, 1995 (as amended). Copies of our regulatory authorisations are available on request and are displayed in the public areas of our offices. The Central Bank of Ireland holds registers of regulated firms and you may contact them on 1890 777 777 or alternatively visit their website at www.centralbank.ie to verify our credentials.
McMahon Galvin Ltd is subject to and complies with the Consumer Protection Code, the Minimum Competency Code and the Fitness and Probity Standards. These Codes offer protection to consumers and can be found on the Central Bank of Ireland’s website www.centralbank.ie
As Insurance Intermediaries we provide advice on a fair and personal analysis of the market for General Insurance products. With the significant number of appointments both local and international we hold, we can offer you an extensive choice of suitable products that best serve your needs and circumstances. In some cases we may be granted authority from an insurance undertaking to conduct tasks on their behalf, for which we will be remunerated. Where we place your business with this insurance undertaking under this authority you will be notified in advance of the placement. We do not guarantee nor make representations in regard to and expressly disclaim responsibility for the financial security of Insurance Companies and Product Producers with whom we place covers.
We will act as an insurance broker to arrange and administer contracts of insurance on your instructions. We provide advice and assistance in the arrangement and placing of General Insurance and Health Insurance. In addition, we provide insurance related risk management advice and assistance in claims negotiation and settlement.
We also provide advice in relation to Health & Medical Insurance as a tied agent for Irish Life Health. We do review the options available with other providers when making any Health Insurance recommendations.
We will normally provide a personal recommendation to you on the basis of a fair and personal analysis of the market, as distinct from using only a single or limited number of insurance undertakings This means we will research the market place, products and providers and recommend the best product to suit your own needs. This research is on the basis of a sufficiently large number of products and providers available, in accordance with professional criteria, regarding which contract would be suitable to meet your needs. We will identify, select and recommend a suitable product producer and on receipt of your instructions, we will transmit orders on your behalf to one or more product producers (a list of which is available on request).
The number of providers that constitutes ‘sufficiently large’ will vary depending on the number of providers operating in the market for a particular product or service and their relative importance in and share of that market. The extent of fair analysis must be such that could reasonably be expected of a professional conducting business, taking into account the accessibility of information and product placement to intermediaries and the cost of the search.
In order to ensure that the number of contracts and providers is sufficiently large to constitute a fair and personal analysis of the market, we will consider the following criteria:
- the needs of the customer
- the size of the customer order
- the number of providers in the market that deal with brokers
- the market share of each of those providers
- the number of relevant products available from each provider
- the availability of information about the products
- the quality of the product and service provided by the provider
- any other relevant consideration
Where Our service differs to this, either because We only consider one or a restricted number of insurers, or if We do not give you a personal recommendation about the insurance products offered (in which case you are responsible for ensuring that it is suitable for you), We will advise you accordingly and in the former case, We will provide you with the names of those insurers with which We conduct business.
In certain circumstances, We may offer products with regulated insurers based on a limited analysis of the market. This limited analysis may occur where we operate a scheme product and the risk is eligible/suitable for same, or urgent cover may be required that does not facilitate a full market review. We also offer Health Insurance on a limited analysis of the market with Irish Life Health D.A.C. All scheme products are reviewed regularly to ensure they remain fit for purpose. Where We have applied limited analysis, We will advise you accordingly.
We will provide you with details of the cover effected on your behalf, including the insurer(s) who are underwriting the risk, and will clarify the scope of the advice given and explain the reasons. This will be provided in a durable medium which includes email unless you tell us otherwise. We will provide you with evidence of cover and all relevant documentation promptly after inception of a policy.
On occasion, we may arrange insurance on your behalf with insurers that have granted us a delegated underwriting authority. This authority may extend to the management of your claims. We will notify you in the event We are acting under a delegated authority. Although Our letter/report will set out key aspects of the cover, this is not intended to be a substitute to the insurer(s) policy wording, which will take precedence in setting out the terms of the cover. We will use Our best endeavours to place cover on your behalf, but We do not guarantee to be able to do so.
While we take care to ensure that the information contained on Our website is accurate and up to date, We give you no promises, representations or warranties about the accuracy, completeness, reliability or suitability of any information on Our website.
Where we offer an instalment facility to you in order to pay your insurance premium by regular instalments, We do not offer advice in relation to this, but we may ask some questions to narrow down the selection of options available; you must make your own choice on which option to accept.
We aim to treat you fairly and to meet the following outcomes in all Our dealings with you:
- You can be confident that the fair treatment of customers is central to Our corporate culture.
- The products and services that We have recommended to you and you have chosen are designed to meet your insurance needs as far as reasonably possible.
- We will provide you with clear information and keep you appropriately informed before, during and after the point of sale.
- You will not face unreasonable postsale barriers to submit a claim or make a complaint.
- We will give you appropriate information about the products and services We recommend, including details of any costs or charges (if any) in addition to your premiums.
GENERAL INSURANCE SERVICES: Inception & Renewal
We provide advice in relation to all general insurance products: including but not limited to Household, Motor, Commercial Property, Public Liability and Employers Liability. Depending on your instructions we can advise you in relation to the products of the Insurance Companies and Product Producers listed on our website. We also work on your behalf to negotiate competitive terms on your insurance programme.
We will also offer assistance to you in relation to processing claims, on policies taken out with our firm. This assistance is provided directly by our staff unless you choose to use an appointed loss assessor. A panel of loss assessors is available upon request.
To ensure continuity of cover, where you have an existing policy which is due to expire and where we have been unable to contact you, we may put continuing cover in force whilst awaiting your instruction. You will be liable for any premiums payable to the relevant insurer for the period of time between renewal and when we receive your instruction. You have the right not to avail of this service and should advise us accordingly.
COOLING OFF PERIOD/RIGHT OF WITHDRAWAL (Distance Marketing Directive)
A consumer (as defined by SI No. 853 of 2004, the Distance Marketing Directive, is a natural person acting for purposes outside his/her trade, business or profession) has the right to withdraw from an insurance policy (as defined under SI No. 853 of 2004), which was provided at a distance (i.e. via internet or telephone) within 14 days of the start date of the policy or the date you received the policy schedule, whichever is the later, without penalty and without giving any reason – this is known as the Cooling Off Period. In relation to Life Assurance and Pension products, you may withdraw within 30 days of inception date of the policy or the date you received the policy schedule, whichever is the later (i.e. the Cooling Off Period is extended to 30 days). The right of withdrawal must be exercised by notice in writing to McMahon Galvin Ltd by quoting your policy number. Should this right be exercised the insurance company may charge a pro rata premium for the period you are on cover. If the cover is motor insurance, the premium cannot be refunded and/or issued until the Certificate of Insurance and Windscreen Disc have been received by us. You, the customer, can cancel your policy by notice in writing at any time. This right to withdraw does not apply to any insurance policy under which insurance cover is provided for less than one month. The right of withdrawal must
Whilst we make every effort to ensure that cover is placed with financially strong companies, we do not guarantee the solvency of any insurer We place business with. If a participating insurer becomes insolvent, you may still be liable to pay the premium, whether in full or pro-rata. We deny any liability in the event of the Insurer becoming insolvent.
Our selection of Insurers is generally based on our knowledge and experience of the market and its products. We offer scheme-rated facilities for some products where our preference is to deal with a limited number of Insurers with whom we can develop trading relationships to the advantage of our clients. We do not offer alternative quotations where there is a restricted or single provider option for a product. A list of the agencies we hold is available upon request.
If you require credit terms, we may be able to arrange premium finance on your behalf, with a Credit Finance Institution with whom we have an appointment (currently Close Premises Finance & Premium Credit Ltd) Alternatively a monthly direct debit facility (if available) from your insurers may be offered.
McMahon Galvin Ltd reserves the right to request additional information that may be required in order to comply with the Anti-Money Laundering requirements of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, as amended by the Criminal Justice Act 2013 and the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2018.
CONFLICTS OF INTEREST:
It is the policy of our firm to avoid conflicts of interest in providing you with insurance and business services. If this is not possible, we will notify you as soon as is practicable after we become aware of the conflict of interest and you may rest assured that you will be treated fairly where such a conflict is unavoidable. In some cases, we may be a party to a profit-share arrangement with product producers where we provide extra services for the provider. Agreements to this effect are in place with the following: Aviva, Allianz, RSA and Zurich. Any business arranged with these providers on your behalf is placed with them as they are at the time of placement the most suitable to meet your requirements taking all relevant information, demands and needs into account.
We have a written complaints procedure for the effective handling of all complaints. We will acknowledge receipt of your complaint in writing within 5 working days. A written update will be issued to you every 20 days by a nominated individual within our firm. Any complaint you wish to make should be addressed to our managing director at 59 Amiens Street, Dublin 1. A comprehensive response to your complaint will be issued within 8 weeks of receipt of your initial complaint. In the event of failure to resolve your complaint you may raise the matter with the Financial Services and Pensions Ombudsman Lo Call: 01 567 7000 Email: email@example.com Our full Complaints Procedure is available on request.
If, in respect of the insurance contract the insurer is not obliged to pay the full claim settlement amount until any repair, replacement or reinstatement work has been completed and specified documents for the work have been furnished to the insurer, the claim settlement deferment amount cannot exceed:
- 5% of the claim settlement amount where the claim settlement amount is less than €40,000, or
- 10% of the claim settlement amount where the claim settlement amount is more than €40,000.
An insurer may refuse a claim made by a consumer under a contract of insurance where there is a change in the risk insured, including as described in an “alteration of risk” clause, and the circumstances have so changed that it has effectively changed the risk to one which the insurer has not agreed to cover. Any clause in a contract of insurance that refers to a “material change” will be interpreted as being a change that takes the risk outside what was in the reasonable contemplation of the contracting parties when the contract was concluded. The consumer must cooperate with the insurer in an investigation of insured events including responding to reasonable requests for information in an honest and reasonably careful manner and must notify the insurer of the occurrence of an insured event in a reasonable time.
The consumer must notify the insurer of a claim within a reasonable time, or otherwise in accordance with the terms of the contract of insurance. If the consumer becomes aware after a claim is made of information that would either support or prejudice the claim, they are under a duty to disclose it. (The insurer is under the same duty). If the consumer makes a false or misleading claim in any material respect (and knows it to be false or misleading or consciously disregards whether it is) the insurer is entitled to refuse to pay and to terminate the contract. Where an insurer becomes aware that a consumer has made a fraudulent claim, they must notify the consumer advising that they are avoiding the contract of insurance. It will be treated as being terminated from the date of the submission of the fraudulent claim. The insurer may refuse all liability in respect of any claim made after the date of the fraudulent act, and the insurer is under no obligation to return any of the premiums paid under the contract.
You must tell us as soon as possible, or otherwise in accordance with the terms of the contract of insurance of any incident or circumstance which may result in a claim under any insurance arranged by us and of all relevant facts relating to it. Failure to do may result in the insurer not paying the claim. This is in addition to any obligations imposed by insurers, details of which will be set out in the policy wording. We will notify insurers in accordance with the circumstances notified by you. You will be required to give all necessary information and assistance required by insurers in order to deal with your claim.
Following the commencement of the Consumer Insurance Contract Act:
- should you become aware of information that would either support or prejudice the claim, you are under a duty to disclose it.
- insurers may not be obliged to pay the full claim settlement amount until any repair, replacement or reinstatement work has been completed and specified
documents for the work have been furnished to the insurer.
- any false or misleading claim in any material respect may result in non-payment of the claim and termination of the contract. The insurer may refuse all liability
in respect of any claim made after the date of a fraudulent act, and the insurer is under no obligation to return any of the premiums paid under the contract.
In some circumstances, claims will be dealt with directly by your insurer or by someone appointed by them. We will let you know if that is the case.
It is in your best interests that you review, on a regular basis, the products which we have arranged for you. As your circumstances change, your needs will change which may result in you having insufficient insurance cover. We would therefore advise that you contact us to ensure that you are provided with up to date advice and products best suited to your needs.
Consumers: Duty of Disclosure when completing documentation for new business/renewals and midterm adjustments
Section 14 (1) – (5) of the Consumer Insurance Contracts Act which is effective from 1st September 2021 alters consumers duty of disclosure:
- You are required to answer all questions posed by us or the insurer honestly and with reasonable care – the test will be that of the ‘average consumer’. An average consumer as per Directive No. 2005/29/EC of the European Parliament and of the Council of 11 May 2005 is reasonably well informed and reasonably observant and circumspect, taking into account social, cultural and linguistic factors.
- Specific questions will be asked. Where you do not provide additional information (after being requested to do so) it can be presumed that the information previously provided remains unchanged.
An insurer may repudiate liability or limit the amount paid on foot of the contract of insurance, only if it establishes that non-disclosure of material information was an effective cause of the insurer entering into the relevant contract of insurance and on the terms on which it did.
Completed proposal forms/statement of fact
Completed proposal forms or Statements of Facts will be provided to you. These are important documents as they form the basis of insurance contract between the insurer and you the consumer. You should review and confirm that the answers contained within are true and accurate.
Commercial Customers: Non-Consumer Disclosure of Information
It is essential that you should bring to our attention any material alteration in risk such as changes of address or use of premises. Any failure to disclose material information may invalidate your claim and render your policy void.
PAYMENT OF PREMIUM AND OTHER MONIES
Unless payment is made direct to the insurer or to a premium finance company, you must pay us all amounts due in accordance with the terms and the payment date specified on our invoice or other documentation. As we are under no obligation to fund premium to insurers on your behalf, failure to pay the monies due by the payment date may lead to insurers cancelling your policy.
Where you have arranged premium finance, the terms of your premium finance agreement may assign your interest in the insurance policy to that provider and any policy changes, including termination, may result in payment rebates to the finance provider.
Default payments and cancellation procedure
We reserve the right, notwithstanding delivery of policy document or receipt of same to you, to cancel the policy of insurance and obtain a credit from the Underwriters, apply same in the reduction of the amount due by you in the event of the following:
- non-payment of a policy premium, in whole or in part, due at inception, renewal or following a midterm adjustment; and/or
- default of a payment of a direct debit premium; and/or
- default of a payment in respect of a Premium Finance agreement; and/or
- your bank returns a cheque due to insufficient funds or for any other reason; and/or
- non-disclosure of relevant information; and/or
- insurer enforced cancellation; and/or
- failure to comply with policy conditions imposed by insurers.
Provided that all reasonable charges pertaining to costs incurred by the us have been paid and provided that no incident giving rise to a claim has occurred in the current period of insurance, you will be entitled to a proportionate return of the premium for the un-expired period of insurance unless the policy is on a minimum and deposit basis, and if this is the case, no return will be allowed on the policy and this will be noted on your policy schedule.
Cancellation by Insurers
Your Insurer may cancel your policy in certain circumstances. These conditions are clearly outlined on all policy documents, which you should read and take note of. Please note in the event of default payments, Insurers/ Product Producers reserve the right to:
- instigate cancellation proceedings; and/or
- withdraw Benefits or Cover.
Following the commencement of the Consumer Insurance Contract Act; where an Insurer cancels a contract of insurance, the insurer will provide to the consumer the reason or reasons for the cancellation and shall repay the balance of the premium for the unexpired term of the contract to the consumer.
Cancellation by You
You can cancel your policy in writing at any time, in accordance with the terms and conditions set out in your policy document and provided no incident has arisen that could give rise to a claim. Cancellations must be given in writing to our office. Should you cancel your policy outside the applicable cooling off period (see “Cooling Off Period”), short terms rates or minimum and deposit premiums may apply. A notice of cancellation given in respect of a distance contract that relates to the issue of a motor vehicle insurance policy is not properly given unless the relevant certificate of insurance and insurance disc has been surrendered to us.
Following the commencement of the Consumer Insurance Contract Act, you may cancel a contract of insurance by giving notice in writing to the insurer, within 14 days after the date the consumer was informed that the contract is concluded. The Consumer will bear the cost of the premium for the period of cover. This does not affect the notice periods provided under the Distance Marketing Regulations (See Cooling off period/Right of Withdrawal).
We reserve the right to make charges, in addition to any insurance premiums, for the arranging, amending, renewing and cancelling any policy of insurance, as well as the handling of claims. However, you will not incur a liability to pay a fee unless we have given you prior notice of this.
We, in the course of carrying on insurance distribution, handle client money in accordance with the Central Bank of Ireland’s Premium Handling Rules, which are designed to protect you. A copy of these rules is available on request.
We will accept payments in cash, by cheque, credit / debit cards or electronic bank transfer in respect of all classes of insurance in the circumstances permitted under our regulatory authorisations. We are not authorised to accept cash or negotiable instruments in any other circumstances.
REMUNERATION AND CHARGES:
McMahon Galvin Ltd are remunerated by a professional fee for the initial work, activity and time spent in seeking the best terms, advice, product and product producer for your specific needs. An administration fee is also charged for the activity involved in the placing and renewal of the policy and also any alterations that take place during the policy period. A scale of our fees is under noted. We may earn our remuneration on the basis of fee, commission and any other type of remuneration, including a non-monetary benefit or on the basis of a combination of these methods. A non-monetary benefit will only be accepted if it enhances the quality of the service to our clients. Where you choose to pay in full for our service by fee, we will notify you in writing in advance and agree the scale of fees to be charged if different from fees outlined below. Where it is not possible to provide the exact amount, we will provide you the method of calculation of the fee.
Our fee scale for Personal Insurances and Commercial Insurances will not exceed 20% of the premium charged by insurers. We reserve the right to amend these fees, should the complexity of the product require a higher fee. We will confirm and agree this fee with you prior to any increased charge being applied.
A fee of €20.00 will be charged for all duplicate documentation.
For certain type of complex works, such as sub-contractors registers, we reserve the right to agree a separate fee with you in advance.
All premiums are subject to a 5% Government Levy, and an additional 2% Government Levy applies on all Motor Insurance policies as per the requirements of the Insurance (amendment) Act 2018, where applicable. A summary of the details of all arrangements for any fee, commission other reward or remuneration paid or provided to us which we have agreed with product providers is available in our office or on our website www.insurancebrokers.ie. Where an override commission is received, this will be disclosed to you in general terms.
On settlement of your account, we will forward to you all documents showing ownership of your policy i.e. Motor Certificate & Disc and Policy Schedules. Where a series of transactions are involved, we will normally hold each document until the series is complete and then forward them to you.
Credit Intermediary: As a credit intermediary we may be remunerated by the premium/credit finance provider on arranging this finance on your behalf.
Definitions “Data Protection Laws” means: the Data Protection Act 2018; the General Data Protection Regulation ((EU) 2016/679) and any national implementing laws, regulations and secondary legislation as amended or updated from time to time in the Ireland (“GDPR”); the Privacy and Electronic Communications (EC Directive) Regulations 2003 and European Communities (Electronic Communications Networks and Services) (Privacy and Electronic Communications) Regulations 2011 (“Privacy Regulations”); and any legislation which supersedes, updates or amends the GDPR, Data Protection Act 2018 or Privacy Regulations.
The terms “Controller”, “Data Subject”, “Personal Data”, “Personal Data Breach”, and “Processing” have the meanings given in the GDPR.
We are committed to keeping Personal Data confidential and process all Personal Data in accordance with the
Data Protection Laws. Our Privacy Notice, which explains how and why we process Personal Data, including what rights individuals have under the Data Protection
Laws can be viewed on our website or a copy can be provided on request.
We shall, and if you are a commercial client, you shall, comply with all applicable requirements of the Data Protection Laws. This clause is in addition to, and does not relieve, remove or replace, a party’s obligations under the Data Protection Laws.
If you are a commercial client, both parties acknowledge their intention to process the Personal Data as independent Controllers.
If you are a commercial client, where you collect Personal Data which you subsequently transfer to us in order for us to provide you with any services under this Agreement, you will ensure that:
- all fair processing notices have been given (and/or, as applicable, valid consents obtained that have not been withdrawn) and are sufficient in scope and kept up-
to-date in order to meet the transparency requirements set out in the Data Protection Laws to enable us to process such Personal Data in accordance with this
Agreement and the Data Protection Laws. Each party acknowledges and agrees that you will have met such transparency requirements by making reference to us
and including a link to Our Privacy Notice in the information that you provide to Data Subjects about the Processing of Personal Data under this Agreement;
- such Personal Data is adequate, relevant and limited to what is necessary in relation to the services being provided by us;
- such Personal Data is accurate and, where necessary, up to date;
- such Personal Data has been collected by you lawfully and, where appropriate, the necessary consents have been obtained from the Data Subject.
If you are a commercial client, each party will promptly notify the other on receipt of any requests, inquiries or complaints from Data Subjects and/or supervisory authorities (as defined in the Data Protection Laws) received by that party which are relevant to any Personal Data Processed under this Agreement and will provide the other party with reasonable assistance, upon request, in dealing with any such requests, inquiries or complaints.
If you are a commercial client, each party shall comply with its obligations to report a Personal Data Breach relating to any Personal Data Processed under this Agreement to the appropriate supervisory authority and Data Subject(s) (where applicable) under Articles 33 and 34 of the GDPR and shall inform the other party promptly of any Personal Data Breach which is notifiable to the supervisory authority under Data Protection Laws. Without undue delay, the parties agree to provide reasonable assistance as is necessary to each other to facilitate the handling of any Personal Data Breach in an expeditious and compliant manner.
We will abide by the following principles:
- process Personal Data lawfully, fairly, and in a transparent manner;
- collect Personal Data for specified, explicit, and legitimate purposes and not further process it in a manner that is incompatible with those purposes;
- ensure that Personal Data is adequate, accurate, relevant and limited to what is necessary in relation to the purposes for which it is processed;
- Personal Data will be kept in a form which permits identification of Data Subjects for no longer than is necessary;
- Personal Data is processed in a manner that ensures appropriate security
Our GDPR Owner can be contacted at 59 Amiens Street, Dublin 1 or by email at firstname.lastname@example.org
We agree to keep all your confidential information in strict confidence and not disclose such information except: to the extent necessary to provide Our services to you under this Agreement, including (i) the sharing of information to implement or administer a syndicated placement; and (ii) to your legal and other professional advisors or experts giving professional advice, or other service providers providing services in connection with the insurance We place for you;
INVESTOR COMPENSATION SCHEME:
We are members of the Investor Compensation Scheme established under Section 38 of the Investor Compensation Act 1998. The Act provides that compensation shall be paid to eligible investors (as defined in the Act) to the extent of 90% of an investor’s net loss or €20,000.00, whichever is the lesser and is recognised as being eligible for compensation. We are also members of the Irish Brokers Association (IBA) Compensation Fund. Subject to the rules of the scheme the liabilities of its members firms up to a maximum of €100,000.00 per client (or €250,000 in aggregate) may be discharged by the fund on its behalf if the member firm is unable to do so, where the above detailed Investor Compensation Scheme has failed to adequately compensate any client of the member. Further details are available on request.
The laws of Ireland form the basis for establishing relations between you and McMahon Galvin Ltd. All contracts, terms, conditions and communications relating to any policies you may enter into with this firm will be in English.
The terms set out above apply to any services provided to you after 1st August 2021 and should the firm change its terms, you will be notified in advance.
We may correspond with you by text and/or e mail and if you do not wish us to communicate with you by these means please let us know.
This Agreement is governed by and construed in accordance with the laws of Ireland. Any disputes in relation to these Terms of Business shall be subject to the exclusive jurisdiction of the Courts of Ireland.
Directors: P. Hanlon ACII & J.P. Galvin
McMahon Galvin Limited. 59 Amiens Street, Dublin 1, Ireland, D01 P786 Telephone: (01) 8363326. Facsimile: (01) 8363327
McMahon Galvin Limited is regulated by the Central Bank of Ireland. Registered in Ireland number 33032. Version 8 – Original July 1st 2012