HM Treasury (HMT) has agreed to honour an exemption which allows rental companies to continue providing personal accident insurance, which must as a minimum cover baggage. This follows calls from the BVRLA to keep the exemption in place.
Last year, HM Treasury launched a consultation on the implementation of the Insurance Distribution Directive and as part of this, HMT looked at which exemptions should be continued under the new regulation.
The BVRLA responded to the consultation and successfully demonstrated that there was little, or no consumer detriment caused by rental companies selling this product and therefore the exemption should continue.
The BVRLA is delighted with the outcome and welcomes the decision from Treasury, who in a statement said:
“The government’s view is that, as long as the conditions of this exemption are satisfied, these products will remain exempt. To date, the government has not seen evidence of significant consumer detriment arising from insurance sales by car hire firms.”