IMPORTANT ANNOUNCEMNET
MARINE INSURANCE – NEW LEGISLATION APPLIES
EFFECTIVE 14th JAN 2005

Marine insurance falls under the umbrella of the Financial Services Authority (FSA)

The FSA is an independent non-governmental body, given statutory powers by the Financial Services and Markets Act 2000, to regulate the financial services industry in the UK.

PHOENIX, along with a vast majority of other UK freight forwarders and cargo handlers, will no longer be able to advise, instruct or implement marine insurance cover under their own ‘Open Cover Policy’ arrangement henceforth.

The “Insurance Mediation Directive” (IMD) takes effect in UK law from the 14th of January 2005. From this date freight forwarders will not be allowed to insure their customers’ goods unless registered and approval received from the FSA. The cost of registration and the responsibilities that go with this are out of proportion to the insurance services offered by Freight Forwarders, and most will not be registering. The “British International Freight Association” (BIFA) estimates than less than 1% of its members will register!

Instead, we can refer any specific insurance requests direct to our Insurance Brokers, who themselves are registered with and act in accordance with the FSA terms and conditions. These introductions can be made under the “Insurance Mediation Directive”

Whilst in the past we have been more than happy to discuss any aspect of marine insurance with our clients, we must now refer all such matters direct to our brokers. This we propose to do on a ‘per shipment basis’
When booking a shipment with Phoenix, should insurance be required, we will direct your enquiry to our Insurance Brokers, who will liaise with you directly on an insurance offer, and all aspects of the cover.

Any subsequent questions on the insurance arrangement must be directed to the Broker, as must any details of a claim.

There will be more information available soon, and we will of course keep updates posted on this web site. In the meantime, please feel free to speak with any of our senior operational staff who will be able to outline these changes personally.