Insurance

Subrogation Waiver Forms

With the introduction of the Financial Services and Markets Act (2000) (FSMA) in 2002, any company which offers insurance cover to customers must be registered with the Financial Conduct Authority (FCA). Companies must complete the registration form and submit a registration fee. The legislation requires companies and individuals to annually renew their registration and submit a renewal fee, should they wish to offer this service in subsequent years.

The CPA with the assistance of CMS Cameron McKenna, a top-10 city law firm, together with two CPA Corporate Members - Oval Insurance Broking Ltd (now part of Gallaghers) and Senior Wright Insurance Services Ltd (now part of Towergate Insurance) - devised a Subrogation Waiver Form, which eliminates the payment of any registration or renewal fees to the FCA.

The Subrogation Waiver Forms are used when a customer wishes to hire a piece of plant or equipment, but does not have the necessary insurance cover.

The Subrogation Waiver Forms allow plant owners to offer customers - for a fee - an interest in the plant owner's insurance policy, so that the customer is covered for any loss or damage to the plant or equipment during the Hire Period. Consumer Waiver Forms are used when hiring out plant and equipment to home owners.

If the plant or equipment is damaged during the Hire Period, then the plant owner's insurance policy will settle the plant owner's claim but will not pursue the customer for the loss.

Plant owners must obtain their insurance provider's prior agreement before offering this service to customers.