What is an IPID? - Insurance Product Information Documents explained

As of the 1st of October, all UK Insurance providers are required to provide customers with an Insurance Product Information Document (IPID) prior to making a purchase as instructed by the EU’s Insurance Distribution Directive.

So... What is an IPID?

An IPID (Insurance Product Information Document) is designed to provide information on general Insurance products in a standardised format to help the customer make a more informed buying decision when comparing Insurance Products.

This is to help ensure they choose a product that meets their needs. It also aims to create a fairer competitive environment for Insurance Providers to compete on in an industry where Treating Customers Fairly is at the heart of what we do.

Here’s what to expect from the new IPID…

The document you can see below is an example blank template of what to expect. All IPIDs from every insurance provider will follow exactly the same layout, however the information that it contains will change depending on the product it relates to. In short it is an easy to understand, slimmed down version of a policy wording giving you the most important information you need to compare insurance products and buy a policy that meets your needs.

It is important to note that it is only a summary of key information and does not replace or contain the full terms, conditions and exclusions which are found in the policy wording.

Below is an example of what an IPID looks like. We have highlighted each section and given a brief explanation to help you understand what the document will include.

1. The first section of the IPID shows the company who designed the product. The country in which the company is registered as well as its regulatory status and authorisation number will then appear immediately after the document title – Insurance Product Information Document.
   
   
2. Next there will be a prominent statement outlining that the full and complete pre-contractual and contractual information about the General Insurance product can be found in other documents, such as the policy wording.
   
   Please note: An IPID will not replace any contractual documentation that is provided with an insurance policy. As a consumer, you should read through all documentation and the policy wording to ensure all information is correct and that the policy meets your needs.
   
   
3. What is this type of insurance? – This section outlines the type of insurance that the IPID relates to at the top of the document.
   
   
4. What is insured? – Information on the main risks insured on this specific policy as well as the sums insured of each risk. Each piece of information listed in this section will be preceded by a green tick symbol.
   
   
5. What is not insured? – Information here relates to some of the key risks excluded from this insurance product. Each piece of information listed in this section will be preceded with a red X symbol.
   
   
6. Are there any restrictions on cover? – The information here details the main exclusions on this insurance product (but not all exclusions). Each piece of information listed in this section will be preceded with an orange exclamation mark symbol.
   
   
7. Where am I covered? – This section explains the territorial limits of the insurance product. Each piece of information listed in this section will be preceded with a blue tick symbol. This section is particularly important for Travel Insurance products.
   
   
8. What are my obligations? – This section identifies the obligations you have in terms of providing information to insurers and any ongoing obligations you must comply with during the policy term.
   
   
9. When and how do I pay? – This section sets out how you pay, the frequency of any payments and any other information / terms relating to premiums payment.
   
   
10. When does the cover start and end? –Provides information relating to the term of the contact.
    
    
11. How do I cancel the contract? – If you wish to cancel your policy, this section explains the process by which you can do so.

Building Trust in the Insurance Industry

In the past the Insurance Industry has had a bad reputation with consumers complaining about the difficulty in understanding policy wordings or the fact that a claim has been declined when they thought they had cover. In recent years the Insurance Industry has taken steps to improve this.

This is where IPIDs come in. With some policy wordings being rather long documents that will differ a great deal from company to company, IPIDs will condense the important information to help you, the consumer, compare products against each other as well as against your needs. This is to help you choose the right product for you. This should help reduce the number of declined claims where customers have misunderstood the cover they purchased and in turn build trust in an industry built to protect your financial interests!

From the 1st October 2018 all insurance policies from Voyager Insurance Services will be provided with an IPID where required.

To book your travel insurance, click here.