Your Rights as an Insurance Policyholder
Insurance policyholders have important legal rights under the Consumer Insurance (Disclosure and Representations) Act 2012 (for consumer policies) and the Insurance Act 2015 (for business policies). Insurers are regulated by the Financial Conduct Authority and complaints can be referred to the Financial Ombudsman Service.
Last updated: 2026-03-09
Your Rights
Right to clear information
Insurers must provide clear, fair, and not misleading information about the policy, including what is covered, excluded, and any conditions you must meet.
Right to fair claims handling
Insurers must handle claims promptly, fairly, and not unreasonably deny a valid claim. Under the Insurance Act 2015, insurers must pay claims within a reasonable time.
Right to proportionate remedies
If you made a mistake in your application (non-deliberate misrepresentation), the insurer cannot simply void the policy. Remedies must be proportionate — e.g., adjusting the premium or amending the terms.
Cancellation and cooling-off rights
For most consumer insurance policies, you have a 14-day cooling-off period to cancel (30 days for life insurance) and receive a refund of premium for unused cover.
Right to complain to the Financial Ombudsman
If your insurer rejects your claim or you are unhappy with the settlement, you can complain to the Financial Ombudsman Service (FOS) after exhausting the insurer's internal complaints process. FOS can award up to £415,000.
Common Myths
Insurers can reject your claim for any minor mistake on the application
Under the Consumer Insurance Act 2012, insurers can only reject a consumer claim for deliberate or reckless misrepresentation. For careless mistakes, the remedy must be proportionate.
If you don't claim for years, the insurer must give you a discount
There is no legal right to a no-claims discount — it is a commercial practice that varies between insurers.
You must accept the first settlement offer from the insurer
You can negotiate and challenge the offer. If you disagree, complain internally, then to the Financial Ombudsman.
What To Do
Read your policy carefully
Understand what is and isn't covered, including any conditions and exclusions.
Notify claims promptly
Report any claim to your insurer as soon as possible — delays can prejudice your claim.
Challenge unfair rejections
If your claim is rejected, request a written explanation and use the insurer's complaints procedure.
Escalate to the Financial Ombudsman
If the complaint is not resolved after 8 weeks, refer it to the FOS.
Key Legislation
- Insurance Act 2015
- Consumer Insurance (Disclosure and Representations) Act 2012
- Financial Services and Markets Act 2000
- FCA Insurance Conduct of Business Sourcebook