What is an IPID?

When you buy a UK insurance policy, you should receive a short document called an Insurance Product Information Document, usually shortened to IPID. It is designed to give you the headline facts about a policy in a standard format, so you can see what you are buying without having to read the full policy wording first. This article explains what an IPID is, what it must contain, and how to use it when comparing cover.

What an IPID is

An IPID is a standardised summary that UK insurers must provide for most non-life insurance products sold to consumers and small businesses. It is typically one to two pages long and follows a set layout, so the same sections appear in the same order across every insurer's documents.

The aim is to make policies easier to compare on substance, covering what is actually included and excluded, rather than only on price. The FCA introduced the requirement under its Insurance: Conduct of Business Sourcebook (ICOBS 6), implementing rules originally derived from the EU Insurance Distribution Directive.

An IPID is not the full policy. The detailed terms, conditions, and exclusions sit in the policy wording, which is a separate and much longer document. The IPID is a starting point, not a substitute.

When you should receive an IPID

You should be given an IPID before you commit to buying a policy. This applies whether you are buying:

• Directly from an insurer, online or over the phone.
• Through a broker or intermediary, including price comparison websites.
• As an add-on, for example travel insurance sold alongside a holiday, or gadget cover sold with a phone.

For renewals, insurers must also make the current IPID available so you can check whether anything has changed since you last bought the policy.

What an IPID must contain

The format is prescribed, so every IPID covers the same core areas using standard icons and headings. The main sections are:

• Type of insurance. A short description of the product, for example "motor insurance" or "single-trip travel insurance".
• What is insured. A summary of the main risks and benefits the policy covers, such as accidental damage, theft, emergency medical treatment, or cancellation.
• What is not insured. The main things the policy will not pay out for, such as wear and tear, pre-existing medical conditions that have not been declared, or claims arising from undeclared activities.
• Are there any restrictions on cover? Key limits and conditions, for example excesses, single-item limits on baggage, or a requirement to fit approved locks.
• Where am I covered? The geographical scope of the policy, such as the UK only, Europe, or worldwide.
• What are my obligations? What you must do as a customer, including answering questions honestly when you apply, telling the insurer about changes in your circumstances, and reporting claims promptly.
• When and how do I pay? Whether the premium is paid annually or monthly, and the methods accepted. Monthly payment is usually a regulated credit arrangement with interest.
• When does the cover start and end? The policy period, typically 12 months for annual policies.
• How do I cancel the contract? Your cancellation rights, including the standard 14-day cooling-off period for most consumer insurance contracts.

How to use an IPID when comparing policies

Because the format is standardised, an IPID is most useful when you are looking at two or more policies side by side. A few practical points to keep in mind:

• Compare exclusions, not just headline cover. Two policies may both say they cover "theft", but the IPID may flag that one requires forced entry or specific locks for a claim to be valid.
• Check the excesses and limits. The "restrictions" section will usually highlight the standard excess and any single-item limits. Higher excesses or lower limits often go with cheaper premiums, but mean you bear more of the cost if you claim, and may be underinsured for valuable items.
• Look at the geographical scope. For travel and motor policies in particular, the area of cover varies significantly between products.
• Treat add-ons as separate products. Optional extras such as legal expenses, breakdown cover, or winter sports cover often have their own IPIDs. Removing them reduces the premium but also reduces what you can claim for.

The IPID is a screening tool. If a policy looks suitable based on the IPID, the next step is to read the full policy wording before you buy, because that is the document the insurer will rely on if you claim.

What this means in practice

An IPID gives you a consistent, comparable snapshot of an insurance policy, but it does not replace the full terms and conditions. Reading the IPID alongside the policy wording, and checking that the cover, exclusions, and limits match your circumstances, is generally the most reliable way to understand what you are actually buying.

If anything in the IPID is unclear, or if the "what is not insured" or "restrictions" sections flag something that may affect you (for example a medical condition, a high-value item, or an unusual use of a vehicle or property), it is worth asking the insurer or broker to point you to the exact section of the policy wording that deals with it before you commit.

A note on getting help

This article is general information, not a personal recommendation. Insurance needs vary, and an IPID can only ever summarise a product, not assess whether it suits your situation.

If your circumstances are more complex, for example you have pre-existing medical conditions, high-value possessions, a non-standard property, an extended trip planned, or you have been declined cover elsewhere, you may want to speak to an FCA-authorised insurance broker who can review the full policy wording with you and explain how it applies to you.

The British Insurance Brokers' Association runs a free find-a-broker service on 0370 950 1790 or at biba.org.uk.