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  • BC-2.6 BC-2.6 Customer Information before Commitment to the Contract

    • BC-2.6.1

      Before customers make their final commitment to enter into a contract of insurance, licensees must provide to the customer sufficient information on the key features of the product being proposed to enable the customer to make an informed purchasing decision, including:

      (a) The identity of the insurance licensee;
      (b) All the important details of cover and benefits;
      (c) Any significant or unusual restrictions or exclusions, conditions or obligations attaching to the customer; and
      (d) The period of cover.
      Amended: January 2007
      Amended: October 2007

    • BC-2.6.2

      Before customers make their final commitment to enter into a contract of insurance, licensees must provide to the customer full details of costs of the insurance products and services being offered, including:

      (a) The level of insurance premiums, the periodicity of payment and any grace periods allowed for payment;
      (b) The consequences of discontinuing the payment of any premium; and
      (c) Any fees and charges other than the insurance premium.
      Amended: January 2007
      Amended: October 2007

    • BC-2.6.3

      While an insurance broker may not approach every possible underwriter for each risk, he should make reasonable efforts to make his selection from a panel of insurance firms. An insurance broker's submission of quotations should incorporate the reasons for recommending or choosing an insurance firm.

    • BC-2.6.4

      Except for clients with turnover exceeding BD 1 million per year, an insurance intermediary must draw the client's attention to the status of the insurance firm: i.e. whether or not the insurance firm is locally licensed (as a Bahraini insurance firm or overseas insurance firm) and, if not, the reasons for recommending or choosing that insurance firm. In respect of these clients, this advice must be delivered in writing.

      Amended: January 2007

    • BC-2.6.5

      An insurance intermediary should recommend, in the first instance, a policy from a CBB licensed insurer (which, for the avoidance of doubt, may be an overseas insurance firm) that he considers best suited to the needs of his client, and offering ease of client service, claims handling, etc. Paragraph BC-2.6.4 covers the situation where an insurance intermediary proposes use of an overseas insurer not licensed or incorporated in Bahrain, because of the lack of availability of local cover.

      Amended: January 2007

    • BC-2.6.6

      Insurance intermediaries acting on behalf of customers in arranging their insurance must, on request, disclose the amount of commission payable to them from the insurance premium, and any other remuneration received for arranging the insurance contract.

    • BC-2.6.7

      Before customers make a final commitment to enter into a contract of insurance, licensees must inform the customer of their key obligations and rights with regard to the transaction, including:

      (a) The customer's duty of disclosure to the insurance licensee;
      (b) Cancellation rights and conditions;
      (c) The licensee's internal complaints procedure; and
      (d) The licensee's obligations in respect of this Code.
      Amended: January 2007
      Amended: October 2007

    • BC-2.6.8

      There are no specific requirements prescribing customers' cancellation rights or required standards of cancellation terms for insurance products and customers. It is expected that licensees will put in place cancellation terms that are fair, reasonable and appropriate with respect to their customers and the products provided, in line with the overarching principles requiring fair dealings with customers (see Paragraph BC-2.1.1). The CBB will monitor the regulatory performance of the market in this area, and may make amendments over time (see Paragraphs BC-1.1.11, BC-1.1.12).

      Amended: January 2007