Regulatory framework: classes and groups of general insurance business
‘Contract of insurance’ means any contract falling within Part 1 of Schedule 1 to the Regulated Activities Order (RAO). This lists 18 types of general insurance contract. These are the classes set out in Annex A to 73/239/EEC, the First Insurance Directive. The list is also to be found in IPRU(INS) in Part I of Annex 11.2 to Chapter 11 of Volume 1.
The 18 classes of general insurance contract are as follows:
|1. Accident||10. Motor vehicle liability|
|2. Sickness||11. Aircraft liability|
|3. Land Vehicles||12. Liability of ships|
|4. Railway rolling stock||13. General liability|
|5. Aircraft||14. Credit|
|6. Ships||15. Suretyship|
|7. Goods in transit||16. Miscellaneous financial|
|8. Fire and natural forces||17. Legal expenses|
|9. Damage to property||18. Assistance|
The First Non-Life Directive also groups these classes into eight groups, for the purpose of granting authorisations for more than one class of insurance. These are listed in Part II of Annex 11.2 to Chapter 11 of Volume 1 of IPRU(INS). These eight groups are as follows:
|Number||Description||Nature of business|
|1||Accident and health||Classes 1 and 2|
|2||Motor||Classes 1*, 3, 7, 10|
|3||Marine and transport||Classes 1*, 4, 6, 7, 12|
|4||Aviation||Class 1*, 5, 7, 11|
|5||Fire and other property damage||Classes 8 and 9|
|6||Liability||Classes 10, 11, 12, 13|
|7||Credit and suretyship||Classes 14 and 15|
*To the extent that the relevant risks are of the insured person being injured or dying, as the result of being a passenger.
These accounting classes and groups are used for the purposes of the FSA return (GIM3180).