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Policy Demand Letter Template for England and Wales

A Policy Demand Letter is a formal written communication under English and Welsh law used by insurance providers to request payment of outstanding insurance premiums from policyholders. It serves as an official demand for payment, typically including policy details, outstanding amounts, payment deadlines, and potential consequences of non-payment. The document must comply with FCA regulations and insurance legislation in England and Wales, containing all necessary elements for legal enforceability.

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What is a Policy Demand Letter?

A Policy Demand Letter is a crucial document in the insurance premium collection process, used when policyholders have failed to make scheduled premium payments. This document, governed by English and Welsh law, serves as a formal notification and demand for payment, typically issued after informal payment requests have been unsuccessful. The letter must include specific details about the policy, outstanding amounts, and payment terms, while complying with the Insurance Act 2015 and FCA regulations. It represents a critical step before potential policy cancellation or legal action.

What sections should be included in a Policy Demand Letter?

1. Letterhead and Date: Company details and current date with full contact information

2. Recipient Details: Full name and address of the policyholder, including policy reference number

3. Subject Line: Clear indication that this is a Policy Demand Letter with policy reference

4. Demand Statement: Clear statement of the amount demanded, deadline, and basis for the demand

5. Legal Basis: Reference to relevant policy terms, conditions, and applicable legislation

6. Payment Instructions: Detailed instructions for making the payment, including account details and payment methods

7. Signature Block: Official signature, name, and position of the sender

What sections are optional to include in a Policy Demand Letter?

1. Previous Correspondence: Reference to prior communications regarding the policy demand

2. Consequences of Non-Payment: Details of potential legal action or policy cancellation if payment is not received

3. Settlement Options: Alternative payment arrangements or settlement terms if applicable

4. Complaint Rights: Information about the policyholder's right to dispute or file a complaint

What schedules should be included in a Policy Demand Letter?

1. Policy Schedule: Copy of the relevant policy schedule showing coverage details and terms

2. Payment History Statement: Detailed statement showing payment history and outstanding amounts

3. Premium Calculation Sheet: Breakdown of how the demanded amount was calculated, including any fees or charges

4. Supporting Documentation: Any relevant correspondence, notices, or evidence supporting the demand

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

England and Wales

Publisher

Ƶ

Document Type

Demand Letter

Sector

Marketing

Cost

Free to use

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