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The Statement of General Insurance Practice seems to have been forgotten or ignored.

There has always been some degree of confusion in relation to Sandwich or Composite Panel Systems.

It’s a pity that the Central Bank did not address the fundamental issue in that the holding of retentions on an arbitrary 30% basis is outside the terms and conditions of the policy.

Professor Peter Lynch, Professor of Meteorology at University College Dublin predicted that the same “basis physics” relating to the planet’s water cycle will also see Ireland suffer storms of greater intensity with sudden and increased rainfall.

See Central Bank comment on retentions below and it would appear that those insurers applying arbitrary retentions will now be under pressure to amend their policy wordings to explain the procedure and how it will apply to claims.Unfortunately the legitimacy or otherwise of the procedure has not been addressed at this point.

Under the Central Bank (Supervision and Enforcement) Act, the Financial Services Ombudsman (FSO) has been given new powers to identify banks, insurance companies and investment companies that have at least three complaints upheld against them.