Terms of Business Agreement

Welcome

The Terms of Business Agreement provides important information about who we are and how we deal with your insurances. Here, we explain how we act and both our and your responsibilities. When you request a quote or ask us to handle your insurances, you are accepting the Terms of Business.

Please read through this document carefully. If you’re still unsure about anything, or if something doesn’t look right, please contact us.

We understand that reading documents isn’t the most exciting thing for people! To help you get started, it may be useful to take your time on the following sections:

04. Your responsibilities

08. Our fees and charges

09. Cancelling your policy

10. Renewal of your policy

15. Complaints

Definitions

Throughout the Terms of Business, when we say:

• ‘you’ or ‘your’, we mean the policyholder.
• ‘we’ or ‘us’ or ‘our’, means Premium Choice Limited. Aura is a trading style of Premium Choice Limited.

Who we are

Aura is a trading style of Premium Choice Limited, registered in England No 3845329. We are an independent insurance broker and work on your behalf to understand what you need from your insurance and to offer appropriate products and services.

Registered Office: Premium Choice Limited, Pendeford House, Pendeford Business Park, Overstrand, Wolverhampton, WV9 5AP.

We are authorised and regulated by the Financial Conduct Authority. Registration Number: 312245. You can check this by visiting the FCA’s website www.fca.org.uk/register.

We act on your behalf when arranging and administering your policy. This includes providing you with a quotation, placing you on cover with your insurer, where you ask us to make changes to your existing policy and performing general policy validation services.

We also perform some activities on behalf of your insurer. Examples are issuing policy documentation, requesting additional information, performing additional policy validation services, collecting premiums due, where the insurer asks us to cancel your policy on their behalf.

Your Responsibilities

Please make sure that whenever you request a quotation or contact us during the lifetime of your policy, you take care to answer all questions honestly and to the best of your knowledge. Insurers rely on this information when providing you with an insurance policy.

You must also tell us immediately about any changes that may affect your policy. These include but are not limited to changes to address, vehicle, occupation, or drivers.  Please do not wait until your next renewal date.

If your information isn’t correct or you fail to disclose any details, this may impact the insurer offering the policy. This could also lead to the cancellation of your policy, treated as if it never existed or a claim not being paid. Please take time to review your documents. If you need to make any changes to your policy, please get in touch with us.

It is important that you read your insurer’s policy wording. It will confirm the cover limits and the terms that apply. If you do not comply with the insurer’s terms and conditions, it could invalidate your policy.

Commercial Customers

The insurer must know all material facts to help them decide whether to provide a policy and the terms they can offer.

You must disclose the information which you know or ought to know. The type of information the insurer needs to know includes any material facts available to you following a reasonable search. If you are unsure whether any facts are relevant, you should disclose them.

About our service

We act as an insurance intermediary to help you arrange your insurance policy. When you complete your quotation, you will be asked a series of questions, so we understand what you need from your insurance.

Please ensure that the policy meets your demands and needs. We will not provide advice or recommendations.

Product Selection

We offer insurance products and services from a limited number of insurers and service providers. We review this panel regularly to ensure their products remain suitable and competitive for our customers.

Payment of your Insurance Premium

When you purchase a new insurance policy, we must receive your payment before the policy starts. We may receive payments on your behalf, such as a claim settlement or refunds from your insurer. Where you have an outstanding balance on your account with us, we may use these payments to reduce your debt.

If we don’t receive a payment, the policy will be cancelled. If you choose to pay in monthly instalments, and you default on your payments, if we are unable to discuss the matter with you, we will issue you with a 7 days’ notice of cancellation of your policy.

Customers aged 17 years and over can choose to pay monthly to spread the cost of the insurance policy. Monthly payments are provided with a credit agreement through a finance provider.

Where we cancel your policy for non-payment of the premium, the insurer may apply their charges for the period of cover used. The insurer may also apply their cancellation and/or administration charges.

Our Fees and Charges

The following fees and charges are non-refundable and payable at the time of the transaction. These are correct at the time of printing, and we reserve the right to vary them if necessary.

We use various databases and automated searches to ensure your data is up-to-date and correct. These checks help to protect you in the event of a claim. Where we need to undertake additional investigations and ask you for further information, we will charge you £50. The charge will be included in the total premium. We will confirm this before you buy the policy, or we complete the additional work needed. For more information, please refer to the “Validation Changes” section in the table below.

You are responsible for ensuring the information we hold is correct. Any incorrect information could delay settling a claim or cause the insurer not to pay out. Please take time to check all your documentation carefully. 

Changes to your policy are subject to acceptance by your insurer. Additional premiums quoted include Insurance Premium Tax (IPT) at the current rate.

Cancelling Your Policy

You can find the full details of your insurer’s cancellation terms, fees and charges in your insurer’s policy wording document.

Before the policy start date

If you buy your policy and choose to cancel before the policy has started, we’ll provide you a refund of any payments received, minus our policy cancellation fee.

Within the first 14 days

If you cancel your policy within 14 days, the insurer will charge you for the period of cover used, plus their own administration and processing charge. We will charge you our cancellation fee.

If you cancel and you have paid for your policy in monthly payments, you may have an outstanding balance. We will confirm this with you.

After the first 14 days

If you cancel your policy after the first 14 days, the insurer will charge you for the period of cover used, plus their own administration and processing charge.

We will also charge our policy cancellation fee and retain our commission of 15% of the total annual premium. The commission we receive from an insurer is earned from the policy start date. It is not refundable in the event of policy cancellation after the first 14-day period.

We will also retain a pro-rata amount of any broker introductory discount provided when you purchased the policy.

If you cancel and pay for your policy in monthly payments, you may have an outstanding balance. We will confirm this with you.

Where we are required to cancel your policy

We will confirm that we will cancel the policy in seven days. We’ll do this by post or email to your last known email or postal address that we have on file. When you let us know that you want to cancel the policy, we will process your refund within 30 days.

If a claim is made on your policy

The full premium will become payable. Also, if you have paid for your policy in monthly instalments, you must pay the total balance of your premium. Paying monthly means the total premium is not fully paid until all monthly instalments are received.

Telematics Device Information

If your insurance policy is cancelled either by you or us, your telematics device fee is non-refundable. Please see your Device Terms and Conditions document for further information.

Renewal of your policy

Your renewal invitation will be sent to you before your renewal date. It will show your new premium and clearly confirm if the policy will be automatically renewed or not. The renewal will also confirm if you need to do anything.

Automatic renewal

If we offer to renew your policy automatically and you’re happy with the price and cover, you don’t need to do anything. We will renew the policy using the payment details you provided.

We may not renew your policy automatically if any monthly instalments are unpaid. You will need to contact us to buy your new policy. We will confirm this in writing before your renewal date.

If you don’t want us to renew your policy automatically, you can opt-out before your renewal date by calling 0330 127 4509. Alternatively, you can email [email protected].

Non automatic renewal

It is not always possible for us to automatically renew your insurance. There may be certain circumstances, such as changes in your risk details, changes with an insurance company, or product changes, that prevent your insurance from being automatically renewed. Your renewal invitation will advise you to contact us. If you don’t contact us, your policy will not renew.

Payment for our Services and the remuneration that we receive

We receive a commission of 15% or less from the insurers that underwrite your motor insurance policy and additional products – such as Breakdown Cover, Legal Expenses and Key Care.

If you choose to pay for your insurance policy and associated products by taking out a loan with our finance provider, we will also receive a commission from them expressed as a percentage of your loan.

Paying by instalments and Other Searches

You will need to apply for a loan if you want to pay for your policy by monthly instalments. We will pass your details on to the credit provider. They will search information about you held by a credit reference agency. The checks will include electoral roll and credit information. The check also helps to prevent fraud.

The credit reference agency will add details of the search and your application to your credit file. This type of check may affect your credit score as it leaves a mark on your credit file, which prospective lenders will consider when assessing your eligibility for future credit.

Policy Validation

Our validation process provides an essential and invaluable service for our customers. It ensures that the information insurers hold about you is accurate. The process helps to maintain any discounts applied to your policy. It also helps avoid future issues if you ever need to make a claim. Some insurers need this information to continue providing the policy.

If we request any information, we will provide full details of what we need for your policy. Below is a summary of the types of information that may be requested:

• Proof of No Claims Bonus. Your most recent insurer document. We will let you know what information we need if we request this.
• Driving Licence Summary. Available from the DVLA website at View or share your driving licence information – GOV.UK (www.gov.uk)
• Proof of Address. For example, a utility bill within the last three months.
• Driving licence photocard. A copy of the photocard where needed.
• Vehicle V5 document. A copy of the V5 document shows the vehicle’s registered owner and the length of time you have owned the vehicle.

If we need to update your policy due to further information identified during the validation process, the insurer may charge you an additional premium, and we’ll apply our administration fee.

The validation process may identify issues where the insurer cannot continue the policy. If the insurer had known the correct information, they would not have accepted the policy. Where this happens, the insurer may choose to cancel the policy. In more serious cases, they may declare it void and of no effect since its start date.

Charges may apply where your insurer has voided the policy. Charges may also apply if your policy is cancelled because of information established during the validation process.

We may cancel your policy if you do not provide the documentation needed to complete the validation of your policy. If you cannot provide any required information, please contact us. We will do our best to assist you.

Quote Guarantee Period

When we provide you with a quotation, it is valid only for the day it is provided. This is because rates can change daily.

Complaints

We aim to provide you with a very high level of customer service. If you feel dissatisfied, we would like to hear from you. To register your complaint, you can contact us by either:

Email: [email protected]

Telephone: 0330 127 4521

Post: Customer Relations Manager, Premium Choice Insurance, Pendeford House, Pendeford Business Park, Overstrand, Wolverhampton, WV9 5AP.

We will follow our complaint-handling procedures. A copy will be provided when we receive and acknowledge your complaint.

ERS policyholders (Syndicate 218 at Lloyd’s)

If your complaint relates to an insurer that is part of a Lloyds syndicate, then you may wish to complain to them directly. If you wish to ask Lloyd’s to investigate your complaint you may do so by contacting: In writing: Complaints Team, Lloyd’s, One Lime Street, London, EC3M 7HA. By email: [email protected], By phone: +44 (0)20 7327 5693, By fax: +44 (0)20 7327 5225, Website: www.lloyds.com/complaints

If you are dissatisfied with our decision

You may be entitled to refer the matter to the Financial Ombudsman Service, who will review your case on an independent basis. You can log onto their website at www.financial-ombudsman.org.uk or by phone on 0800 023 4567. To use their service, you must be eligible, and your complaint must be sent to them within 6 months of our Final Response Letter.

Fraud Detection and Prevention

We may carry out a credit check with credit reference agencies, fraud prevention agencies, and other public and privately available sources of information. The search will be recorded as a general insurance search and only visible to you on your credit file.

We work hard to detect and prevent fraud and other financial crimes. We have specialist teams that support us in validating the information provided.

At any time, we may check, share, and record any information you provide with Fraud Prevention Agencies in the UK and other countries. This also includes public bodies, including the police.

If we identify fraud with the information provided, we will record this information and take all required action. It will also be shared with other companies registered with Fraud Prevention Agencies.

Electronic Communications

If you provide us with an email address for your policy, we will issue your documents using that method. To assist us in providing our service to you, we will contact you by email and/or SMS. You cannot unsubscribe from these communications.

Where you have selected to receive marketing emails from us, you can unsubscribe anytime.

Please let us know if you need to receive your documents in another format, for example, by post.

Handling Customer and Insurer Money

We act on behalf of the insurer to collect and pay your premiums. When you pay us, your premium is treated as received by the insurer.

The payments are stored in our account and used to pay your insurer or broker. We retain any interest that we may earn on the account.

Where we refund any premiums to you, they are treated as received by you when we’ve paid them to you.

Financial Sanctions

UK money laundering regulations require us to collect adequate ‘Know Your Client’ information about you. We will use information about you and others named on your policy to ensure compliance with financial sanctions in the UK and internationally. The process includes checking your information against the HM Treasury list of financial sanctions targets and other publicly available sanctions lists.

We must report any evidence or suspicion of financial crime to the Serious Organised Crime Agency. We are not allowed to disclose any such report.

We do not allow our employees or others engaged by them to be influenced or influence others in making or receiving undue payments or privileges from or to insurers or clients.

Confidentiality and Security

We will always ensure that any information you provide us is treated as private and confidential. For further information about how we handle your data when you have a policy with us, please refer to our Privacy Notice for full details.

Employee Remuneration

We remunerate our employees by paying a base salary and offering variable rewards. Our remuneration framework is led by our company values (insert link). It is designed to ensure that all staff act in a customer’s best interests. We actively seek feedback from our customers to continuously improve our standards.

Third Party Costs

Where we incur costs from a third party, we will add these costs to your overall debt owed to us. Examples of third-party costs may include a debt collection agency, legal professional, or bailiff when collecting a debt from you.

Compensation

We carefully select the insurance providers that we use. Insurers must be able to protect you in the event of a claim. We perform due diligence on the insurance providers for your peace of mind. We also use industry analysis of the market and information provided by the FCA register.

Your insurer is responsible for meeting their contractual obligations. We do not accept any liability for any losses that may occur from the financial failure of any insurer.

We are covered by the Financial Services Compensation Scheme (FSCS). In the unlikely event we cannot meet our obligations, you may be entitled to compensation from the scheme. Further information about the compensation scheme is available at www.fscs.org.uk.

Rights of Third Parties

No provision of this Terms of Business is enforceable under the Contracts (Rights of Third Parties) Act 1999 by anyone other than you or us.

Severability

All other sections of the Terms of Business Agreement will remain in force if any part is identified as invalid or unenforceable in whole or in part.

Force Majeure

We shall not be in breach of this agreement or otherwise liable for any failure to fulfil our obligations if the failure:

• results from events, circumstances, or causes beyond our reasonable control,
• we could not have reasonably foreseen or acted against.

Variations

We reserve the right to update these terms from time to time without your notice. We recommend regularly visiting our website to ensure you have seen and know our latest terms.

Debt Collection

Where a policy is cancelled, we will confirm if there is an outstanding balance left to pay us. For example, this may happen if you paid for the policy in monthly payments.

We will pass your debt to a third-party debt collection agency if the balance remains unpaid. The debt collection agency may add further charges to recover any amount owed.

The debt collection agency can recover a debt amount relating to any policyholder from 17 years old.