Insurance product information document (IPID)
A standardized two-page document, required by the Insurance Distribution Directive for non-life products, presenting in a comparable way what is insured, what is not and the main restrictions.
The insurance product information document is a sheet required by the Insurance Distribution Directive for all non-life insurance products intended for customers, whose format is set by a 2017 European implementing regulation. It in principle fits on two pages and follows the same structure for all insurers: type of insurance, what is insured, what is not insured, restrictions on cover, territorial scope, the insured's obligations, payment terms, start and end of cover, cancellation. Common icons mark each section. It must be provided before the contract is concluded, alongside and not instead of the contractual terms. Its aim is comparability: a consumer should be able to put two offers side by side and immediately see their main differences in scope. Its equivalent for insurance-based investment products is the key information document under the packaged investment products regulation. For the insurer, drafting this document is a delicate exercise in candor: it summarizes without being able to say everything, and a significant exclusion missing from it can be raised against the insurer as a failure to inform, even if it appears in the general conditions.
Textbook case: two home insurance policies show similar prices. Comparing their standardized documents, a consumer sees that the second lists, under what is not insured, damage caused by surface water runoff, while the first covers it: the sheet revealed in two minutes a difference buried in forty pages of general conditions.
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