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Expulsion On The Cards

October 21, 2014

FENSA reports a ‘stubborn minority’ of its registered businesses have not embraced mandatory Insurance Backed Guarantees (IBGs)

 

The system set up by FENSA and its Approved Insurance Providers allows automatic notification of installations from FENSA to the insurance company, automatic issuing of the IBG policies direct from the insurance company to the homeowner and billing direct from the insurance company to the installer.

According to FENSA, this system is working well. However, there is a ‘stubborn minority’ of installers that have yet to provide FENSA with details of their chosen IBG provider and therefore currently cannot self-certify.

FENSA warns that the consequences for these installers are ‘stark’. If an installer does not issue (or pay for) an IBG policy for each job notified, that company will be expelled from FENSA. Such installers will also not be able to register with another glazing Competent Persons Scheme, as they are in breach of FENSA rules.

“There is no hiding place for installers ducking out of IBGs,” stated Chris Mayne, Managing Director, FENSA.  “Because the system is computerised, we can immediately see which installers do not have an IBG supplier in place. They will be expelled from FENSA.”

FENSA rules state: ‘To provide each customer (other than a local authority or housing association) with an Insurance Backed Guarantee policy (conforming to requirements laid down from time to time by FENSA) to provide cover to the customer should the Registered Business, for whatever reason, cease to trade.’

“We have a duty to those FENSA registered businesses that are playing by the rules,” said Chris Mayne. “We cannot allow those installers that break or ignore the scheme rules to carry on as usual. We will initiate the process to expel these installers.”

 

Caption            FENSA warns that members can be expelled if they do not comply over compliance and mandatory IBGs.

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