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Powered Mobility Products: Insurance

Volume 455: debated on Wednesday 10 January 2007

To ask the Chancellor of the Exchequer if he will take steps to grant retailers of powered mobility products covered under the industry code of practice the right to sell insurance without requiring Financial Services Authority accreditation. (113006)

[holding answer 8 January 2007]: The Financial Services Authority (FSA) assumed responsibility for the regulation of general insurance on 14 January 2005. The introduction of the FSA's regime served to implement the EU's Insurance Mediation Directive (IMD) 2002/92/EC in the UK.

The IMD requires the UK to regulate various insurance mediation activities in connection with contracts of insurance, including long-term insurance business, commercial insurance and reinsurance. The activities required to be regulated include selling and administering such insurance contracts by intermediaries. The IMD does not apply where a number of specified conditions are met, however the selling of insurance along with powered mobility products is not capable of meeting all of these conditions. In general, those undertaking insurance mediation must either be authorised to do so by the FSA, be an appointed representative of an authorised firm or be a member of a designated professional body that allows the firm to be exempt from authorisation.