BMW group has launched a new guaranteed asset protection (GAP) product in the UK with Allianz Global Assistance for BMW, Mini, BMW Motorrad and Alphera dealers and dealer partners.
The offering, which is branded a ‘Shortfall Insurance Product’, has been designed to ensure retailers are selling GAP in a manner which is compliant with new Financial Conduct Authority (FCA) regulation, due to come into force next week.
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In June the FCA published the final version of its new rules for the sale of GAP insurance. This included a two day ‘deferral period’ after the customer had been informed of a number of criteria.
The new rules come into place from 1st September which means dealers had less than three months to ensure their systems were compliant with the new regulation.
BMW’s Shortfall system will include all the prescribed information retailers must give potential customers, and automatically counts the days from when a quote has been given, ensuring retailers do not sell cover before the new rules allow.
The insurance offering covers BMW and Alphera Partners’ vehicles with an invoice price up to £120,000, up to £50,000 on MINIs and up to £30,000 for BMW Motorrad.
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By GlobalDataPaint and fabric treatments purchased by customers can be included in the invoice price calculation, and there is no cap on the value of factory or retailer fitted accessories delivering added value to customers.
