COB 7.8.3 COB 7.8.3
Insurerand an Insurance Intermediarymay only recommend to a Clienta contract of General Insurancethat does not meet all the Client'srequirements if it clearly explains to the Client, at the point of making the recommendation, that the contract does not fully meet the Client'srequirements and the differences in the insurance recommended.Derived from DFSA RM56/2008 (Made 1st July 2008). [VER14/07-08]
COB 7.8.3 Guidance
When deciding what level of explanation is appropriate for a
Clientto whom a contract of insurance that does not fully meet that Client'srequirements is recommended, the Insureror Insurance Intermediaryshould take into consideration the knowledge held by the Clientin relation to the type of insurance in question. The explanation should include sufficient information so that the Client can understand easily the differences between what is recommended and the Client’s requirements, and the advantages and disadvantages of the recommended insurance, including any financial or other risks the Client may face if the recommended policy does not fully meet the Client’s requirements.