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Status: You are viewing the version of the handbook as on 2005-06-30.

DISP 1.7 The Society of Lloyd's

DISP 1.7.1RRP

The Society of Lloyd's must establish and maintain appropriate and effective procedures for handling complaints by policyholders against members of the Society, which comply with DISP 1.

DISP 1.7.2RRP

Members of the Society of Lloyd's must, in complying with DISP 1, ensure that the arrangements which the member maintains are compatible with the procedures maintained by the Society in accordance with DISP 1.7.1 R, so that, taken as a whole, the requirements of DISP are met.

DISP 1.7.3GRP

The Society of Lloyd's must take reasonable steps to ensure that complaints by policyholders against members of the Society are dealt with under the procedures in DISP 1.7.1 R and that members comply with the requirements of those procedures.

DISP 1.7.4R

A complaint by a policyholder against a member of the Society of Lloyd's may not be referred to the Financial Ombudsman Service until after the internal procedures in DISP 1.7.1 R have been completed or until after the end of eight weeks from receipt of the complaint, whichever is the earlier.

DISP 1.7.5R

Notices under DISP 1.1.7 R must be given to the FSA by the Society of Lloyd's on behalf of any member eligible for an exemption under that rule.

DISP 1.7.6R

The Society of Lloyd's must notify the FSA if the conditions in DISP 1.1.7 R no longer apply to a member who is exempt.

DISP 1.7.7R

The report in DISP 1.5.4 R must be provided by the Society of Lloyd's and must cover all complaints by policyholders against members falling with the scope of DISP 1.5.4 R.

DISP 1.7.8G

Each member of the Society of Lloyd's is individually subject to the rules in DISP 1 as a result of the insurance market direction given in LLD 6.2.1 D under section 316 of the Act (Direction by Authority).

DISP 1.7.9G

However, the Society of Lloyd's operates a two-tier internal complaints handling procedure, currently set out in the "Code for Underwriting agents: UK Personal Lines Claims and Complaints Handling". Under this procedure, complaints by policyholders against members of the Society are considered by the managing agent and then, if necessary, by the Society of Lloyd's in-house Complaints Department. This procedure (and any procedure that may replace it) will be subject to the requirements in DISP 1.

DISP 1.7.10G

Members will individually comply with DISP 1 if and only if all complaints by policyholders against members are dealt with under the internal procedure established by the Society of Lloyd's for handling those complaints, provided that this procedure complies with DISP. Accordingly, certain of the obligations under DISP 1, for example the obligation to report on complaints received and the obligation to pay fees under DISP 5 , must be complied with by the Society on behalf of members. Managing agents will not have to make a separate report to the FSA on complaints reported under DISP 1.7.7 R.

DISP 1.7.11R

A members' adviser must establish and maintain effective arrangements for handling any complaint from a member of the Society of Lloyd's regarding advice given to the member in connection with the acquiring or disposing of syndicate participation.

DISP 1.7.12G

Complaints from members of the Society of Lloyd's regarding the activities of members' advisers, which cannot be resolved by the members' adviser, cannot be referred to the Financial Ombudsman Service. (See LLD (the Lloyd's sourcebook), for further information concerning complaints by members of the Society of Lloyd's.)