Extended warranty contracts providing for the repair or replacement of satellite television equipment were contracts of general insurance within the meaning of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 Article 3(1). The risk was the breakdown of the equipment which would lead to expense on the part of the insured and the risk was therefore one of financial loss attributable to their incurring unforeseen expense. The provision of the contracts was therefore a regulated activity under the Financial Services and Markets Act 2000, for which the defendants had required to be authorised, but were not. The Court of Appeal rejected the defendants’ appeal (Digital Satellite Warranty Cover v The Financial Services Authority).
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Regulation of benefits in kind insurance
- Mills & Reeve LLP
- Miranda Whiteley
- United Kingdom
- December 21 2011
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Ting Sim
Legal Counsel
Shell Eastern Petroleum