SMART GAP InsurancePSL professional

Module Objective

By the end of this module you will be able to complete an online assessment which will demonstrate:

Your understanding of the FCA and relevant regulations

Knowledge of SMART and RTI GAP Insurance

Competence in explaining the features of SMART GAP Insurance

Competence in presenting SMART GAP Insurance

Ability to deliver outstanding levels of customer service

Contents

1.SMART GAP Insurance

2.Features and Benefits

3.Eligibility

4.Policy Conditions and Exclusions

5.Sales Process

6.Administration Procedure

7.Claims Procedure

8.Complaints Procedure

9.Cancellation Procedure

10. Insurer and Administrator

11.Next Steps

1. SMART GAP - overview

RTI GAP Insurance covers the difference between the amount a motor insurer company pays and the original invoice price of the vehicle, including manufacturer and dealer fitted accessories. In addition, it will also contribute towards a motor insurance excess.

SMART GAP will cover the repair cost for cosmetic bodywork damage such as scratches, scuffs and small dents caused by day-to-day motoring. In addition, should the vehicle be declared total loss it will cover the difference between the motor insurance pay-out and the greater of the vehicle’s invoice price or the finance settlement.

SMART (Small to Medium Area Repair Technology) Insurance offers effective, fast solutions to assist in the cosmetic repair of vehicles. It enables vehicle owners to take advantage of a nationwide network of mobile repairers who can assess and repair the damage at their convenience.

2. SMART GAP Insurance

Return to Invoice Insurance (RTI)

RTI is designed to pay a sum of money when the customers’ vehicle is declared a “total loss” following an accident, fire, flood or theft, if the amount offered by the motor insurer is less than the original invoice price of the car.

RTI Gap typically pays the difference between the insurance company settlement figure and the original invoice price, also known as the Purchase Price (see next slide)

Included in the cover are;

Finance GAP – in the event that the finance settlement is greater than the original invoice price, the policy will settle this higher amount – this cover runs for the full term of the finance agreement

Negative equity - the policy includes any finance rolled into the vehicle from a previous agreement, known as negative equity, up to a maximum of £4,000

Motor Insurer excess - Up to £250 contribution towards the excess

EV battery - if the vehicle is an electric vehicle for which the battery is subject to a lease/contract hire agreement, the policy will pay the shortfall between the motor insurer’s total loss settlement of the battery and the early termination charge owed to the lease company

2. SMART GAP Insurance

Purchase Price

To be clear on what is included and what is not included, this is defined as;

The price paid for the vehicle including VAT and all factory fitted accessories and after any discount given.

Government grants, finance deposit allowances and/or dealer contributions will be treated as a discount.

Also covered are dealer fitted accessories (provided they are listed on the manufacturers’ price list), new vehicle registration fee and delivery charge, paintwork and/or upholstery protection kits, non-transferrable warranty charges, other insurance premiums provided they are not refundable.

What is not covered is road fund licence, administration fee, fuel, SMART GAP or other refundable insurance premiums, service plans, negative equity in excess of £4,000 and any finance arrears or associated costs.

2. SMART GAP Insurance

SMART Insurance

SMART Insurance is designed to cover sudden and unforeseen damage to the bodywork of the insured vehicle, which falls within a 30cm diameter and can be repaired using SMART techniques. The policy will cover the cost of the repairs by a qualified technician appointed by Premia Solutions to complete the repair to “best endeavours”.

Included in the cover are;

Minor dents, scratches both light and heavy and bumper scuffs

Wing mirrors, bumpers, the bonnet and the boot are are included

The maximum are of damage covered is up to 30cm in diameter

The damage must be repairable using SMART techniques

Maximum benefit per claim is £500 and up to £2,000 in total

if damage falls within a 30cm but is not SMART repairable, the policy will pay a £150 contribution towards a bodyshop repair

3. Eligibility

The customer;

Must have a fully comprehensive motor insurance policy in force throughout the term of the policy

Is the registered keeper or hirer of the vehicle

Principally uses the vehicle in the UK, the Channel Islands, any other country that is a member of the E.U.

The vehicle is a motor car and;

Is NOT a commercial vehicle, an emergency vehicle, taxi, bus, van, truck, motorcycle or vehicle used for dispatch, road-racing, rallying, pace-making, speed testing or any other competitive event; or a vehicle with wheels of chrome finish or split rim construction

Does NOT have a non-standard or custom paint finish. This includes but is not limited to self-healing paint, chrome illusion paint, two tone paint, or matt finishes

Is less than or equal to 10 years

Has an invoice price is no greater than £150,000

For full list please see the terms and conditions of the policy.

4. Conditions

Customers can add the cost of the premium to the cost of the car or pay by separate payment

Customers are able to purchase the product in one lump sum, or over 11 interest free monthly instalments

Customers must notify the administrator of any change in circumstances such as change of use, change of name or address, private plate being added to the vehicle, transfer of ownership or modifications being made to the vehicle

The policy cannot be transferred after 90 days

All elements of the policy are paid from the total policy benefit – claims, excess contributions, etc.

For full list please see the terms and conditions of the policy.

Any claim where the customer has the option to receive new vehicle provision under the terms of their motor insurance policy in respect of the total loss of the insured vehicle

Vehicles insured under any type of motor trade insurance policy

Any recoverable VAT

Any changes to the vehicle from the manufacturer’s specification (unless for the purpose of mobility)

The salvage of the vehicle

For full list please see the terms and conditions of the policy.

4. What is NOT Covered - GAP

We aim to keep policy restrictions to a minimum and the following represent a typical example of what is not covered under a SMART Repair Policy

Minor damage claims which are not reported within 30 days of the damage occurring

Where the minor damage exceeds the covered area of 30cm

Stone chip damage

Where the damaged panel has been torn or perforated

Non-standard or customer paint colour / paint finish

Damage to the roof, tyres, alloy wheels or rims

Over-time damage such as wear and tear or rust

For full list please see the terms and conditions of the policy.

4. What is NOT Covered - SMART

5. Sales Process

Treating customers fairly is cultural to our business. We must therefore:

Establish that the customer has a demand or a need for the product being offered

Ensure the customer is provided with clear information and are appropriately informed before, during and after the point of sale, making clear that the product is optional and it’s their decision whether or not to purchase

Ensure the advice on the products is suitable and takes account of their circumstances

Offer the customer every product that they’re eligible for

5. Sales Process – Deferred Opt-In Period

Customer is given

‘Prescribed

Information’

Day 1 Day 2 Day 3 Day 4

Customer can purchase SMART GAP by contactingyou and confirming they want to proceed

and Policy can be registered.

ONLY THE CUSTOMER CAN

CONCLUDE THE SALE

ON EITHER DAY 2 OR 3 BY

CONTACTING YOU

Note: Early SMART Gap Declaration and an email confirmation is required from customer (this process is only required if vehicle is being dispatched within 3 days).

6. Administration Process

Complete all required fields on the Reef, Dealtrak and Synergy systems as appropriate

Print and provide the customer with the following documents

Insurance Product Information Document (IPID)- highlighting the significant and unusual exclusions

Policy document

Policy schedule

Direct Debit conditions and schedule as appropriate

7. Claims Procedure

Your Role

Advise customers of the correct procedure, including telephone numbers and details of the scheme administrator, Premia Solutions

Administrator Role

Premia Solutions administer all claims. You must advise the customer to contact Premia Solutions on the dedicated telephone number or via the claims portal on the Premia Solutions' website

7. Claims Procedure - GAP

Premia Solutions have a dedicated claim line for total loss claims, which operates within office hours

The Customer should call Premia Solutions who will:

Take details of the claim over the phone

Advise the customer of the claims procedure and issue a claim form for completion

The customer will:

Only accept motor insurer’s settlement offer after discussing with Premia Solutions

Complete the claim form

Submit the requested documents with the claim form

Premia Solutions will then assess the claim and where authorised reimburse the customer directly

7. Claims Procedure – SMART

The Customer should contact Premia Solutions who will:

take details of the claim

advise the customer of the claims procedure and issue a claim form for completion

The customer will:

complete the claim form and take photographs of the damage, as advised in the policy document

will submit the requested documents and images with the claim form

Premia Solutions will then assess the claim and where authorised will appoint an approved repairer to undertake repairs to their best endeavours.

8. Complaints Procedure

Firstly you will need to establish the nature of the complaint that the customer wishes to make

If the complaint relates to the sale of the policy, the customer should contact the selling dealer

If the complaint relates to the administration of the policy or a claim the following steps should be taken

The customer should firstly contact Premia Solutions

Should the customer remain dissatisfied they can ask the financial ombudsman to review their case

Contact details for the above can be found in the policy document

9. Cancellations Procedure

If the customer wishes to cancel their policy, they should phone the scheme administrator, Premia Solutions

The customer must not have made a claim on the policy, or be in a claim situation

If the customer cancels within the first 31 days, they are entitled to a full refund of premium paid

If the customer cancels outside of this 31 day period, the customer will receive a refund proportionate to the number of expired months, minus a £50 administration charge

10. Insurer & Administrator

Insurer

DTW 1991 is Syndicate DTW1991 is an approved independent Lloyd’s syndicate managed by Coverys

Managing Agency Limited

Authorised by the PRA and regulated by the PRA and FCA to act as a Lloyd’s of London Managing Agent

The syndicate is a Lloyd’s and UK regulated business that is continually tested for both conduct and solvency

performance

DTW1991 benefits from Lloyd’s A.M. Best rating of A, and a Standard & Poor’s rating of A+

Administrator

Premia Solutions are authorised and regulated by the FCA

Have been a partner of Perrys since 2010

Administer claims for both SMART GAP and our Complete Wheel Protection policies

11. Next Steps…

You now have two choices…

If you feel prepared and you are fully confident that you have understood this module, you can move forward and sit the online test

If you do not feel completely prepared, you can return to the beginning of this module and complete your preparation