Changes to the REAL QANW Insurance Scheme

stevie gill · Jan 27, 2012

Hi Guys,

I'm sure many of you received the email from REAL recently highlighting the fact that they now offer insurance backed workmanship warranties as well as advanced deposit payment insurance.

One thing that's confused me are the premiums they have mentioned. It states that we should pay monthly premiums and then list the values for 2, 5 and 10 year warranties. Are these premiums payable each and every month for the life of the warranty or for 12 months, or is this a one off payment which is then split into 12 monthly direct debit payments?

Not sure if I'm missing something, and hopefully they're only expecting us to pay it as a one off fee, as given the current pricing in the market place, I would find it harder to secure work if we're having to build in additional costs to the quotes to cover this1

Anyone else have any thoughts on this?

Graeme Harrold · Jan 27, 2012

Its a 1 off payment as far as I can gather. Previously the customer ( or in some cases installers) paid the £35 for an installation and the length of the warranty was dictated by your own issued guarantee. This simplifies the process with a sliding scale payment...

morpheus75 · Jan 28, 2012

I rang them on thursday to clarify as their email was confusing. If you did say 2 jobs in a month and opted for the 10 year warranties then that month they will deduct the £70 odd. The following month you did no job then no payment.

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Eco Deal · Feb 1, 2012

Deposit & Advanced Payment Insurance plus an Insurance Backed Workmanship Warranty:

2 year Workmanship Warranty	£26.50
3 to 5 year Workmanship Warranty	£31.00
6 to 10 year Workmanship Warranty	£35.25

[SUB]Insurance Premium Tax at the current rate of 6% is included within the premium rates stated above[/SUB]

To access the DAWWI Scheme you are required to go through a registration process with QANW. To proceed to this registration process click continue at the bottom of this screen. You will then require to complete a short application form with some details about your business, as well as to read and accept the DAWWI Scheme terms & conditions. You will also be asked to provide us with a copy of your standard written workmanship warranty when you register and finally you will also be required to complete a Direct Debit Mandate for this on our secure payment site. This is a one-off registration that should take you no more than 10 minutes to complete.
Once you have completed the application process, QANW shall review the content and provide confirmation of your access to the DAWWI Scheme, via e-mail, within 5 working days of receiving the full detail of your application. This e-mail confirmation will then prompt you to access the online system, exactly as you did before, in order to commence your firm's participation onto the DAWWI Scheme.
Once you have successfully registered and accessed the DAWWI Scheme online system, you should continue to log contracts in the same way you did previously. On receipt of the deposit information of a contract, which you require to enter onto the system when you agree a contract with a consumer, QANW will issue a Deposit and Advance Payment Insurance policy to your customer. However, in addition to the deposit information that you provided using the DAPI scheme, you will also be required to sign the installation off as satisfactorily completed once you have completed the work, received full payment (with the exception of any agreed retention) and issued your workmanship guarantee to your customer. Once you have signed any contract off as complete, QANW will then issue an Insurance Backed Workmanship Warranty to your customer.

QANW · Feb 7, 2012

Good afternoon,

I am posting this on behalf of QANW, the insurance intermediary who operates the REAL DAWWI scheme. I hope to be able to address some of the concerns that you may have regarding the new Scheme:

“One thing that's confused me are the premiums they have mentioned. It states that we should pay monthly premiums and then list the values for 2, 5 and 10 year warranties. Are these premiums payable each and every month for the life of the warranty or for 12 months, or is this a one off payment which is then split into 12 monthly direct debit payments?”
This is not the case. The prices quoted are one off payments made in respect of individual orders for workmanship warranty insurance. There is no continuing obligation to pay premium, for the duration of the period of cover. It’s simply one payment for one policy.

As a working example:
Your workmanship warranty states that defects in workmanship are covered for 10 years. For the month of April, you register 2 contracts on the DAWWI system. The DAWWI system will ask for your guarantee period. Since the price for registering a contract covered by a 10 year written workmanship guarantee is £35.25, £70.50 (£35.25 x 2) will be debited from your account on the 14[SUP]th[/SUP] of the following month (May).

Now let us say that in May, you don’t carry out any installations, therefore, you don’t register any contract details on the DAWWI system during that month. Your account will not be debited at the next billing date, since you will have not made any registrations. Furthermore, there are no membership fees, or minimum-use fees.

All premium is collected directly from you, via direct debit.

“I rang them on thursday to clarify as their email was confusing. If you did say 2 jobs in a month and opted for the 10 year warranties then that month they will deduct the £70 odd. The following month you did no job then no payment"
This is correct.

“Its a 1 off payment as far as I can gather. Previously the customer ( or in some cases installers) paid the £35 for an installation and the length of the warranty was dictated by your own issued guarantee. This simplifies the process with a sliding scale payment...”
This is mostly correct. Under the previous Deposit & Advance Payment Insurance Scheme, Workmanship Warranty Insurance was not provided to the consumer as standard, instead, it was up to the customer to decide whether or not they wanted to purchase optional Workmanship Warranty Insurance. This only provided workmanship cover for up to 5 years from the completion date.

Under the new DAWWI scheme, both Deposit & Advance Payment Insurance and Workmanship Warranty Insurance are provided by QANW to your customers as standard, and at no additional cost to them. You simply register each contract on the online system, making sure to select the correct warranty period (this period has to be the period of your own written guarantee). The Deposit & Advance Payment Insurance will be issued to your customer shortly after you register the contract, with the Workmanship Warranty Insurance following shortly after you have signed the installation off as complete. Payment is collected on the 14[SUP]th[/SUP] of the month following the registration date.

Once you have registered with the Scheme, you will be able to view a number of new Frequently Asked Questions, which are designed to help REAL contractors understand the Scheme.

If you have any questions in the mean time, please do not hesitate to direct any queries to [email protected]

Kind regards,

Blair Houston LLB, Cert CII
Technical & Compliance
QANW
(01292) 268 020

pwboston · Feb 7, 2012

If we dont want you to take this money because we have a scheme already for warranty, but still want to register the job for the deposit though, can we still do that.

For instance we are already in the NICEIC for contracting and MCS, which offers as standard a 6 year warranty, i dont need to pay you for another warranty, doubling up my insurance.

BruceB · Feb 7, 2012

The new scheme all seems rather self serving, forcing people to take out insurance on every job when most of my customers and myself go through life specifically avoiding taking out paid warranties on items purchased on the basis that they are designed to make someone else rich at our expense.

QANW · Feb 10, 2012

pwboston said:
If we dont want you to take this money because we have a scheme already for warranty, but still want to register the job for the deposit though, can we still do that.

For instance we are already in the NICEIC for contracting and MCS, which offers as standard a 6 year warranty, i dont need to pay you for another warranty, doubling up my insurance.

The DAWWI Scheme encompasses both Deposit & Advance Payment Insurance, and Workmanship Warranty Insurance. QANW no longer provides free Deposit & Advance Payment Insurance (as per the legacy DAPI Scheme).

REAL member contractors do not need to use the new DAWWI Scheme, provided that they can provide evidence to REAL that they have alternative arrangements in place (for example, Workmanship Warranty Insurance, and Deposit & Advance Payment Insurance, from established providers of such products.)

Kind regards,

Blair Houston LLB, Cert CII
Technical & Compliance
QANW
(01292) 268 020

babba · Feb 10, 2012

QANW said:
The DAWWI Scheme encompasses both Deposit & Advance Payment Insurance, and Workmanship Warranty Insurance. QANW no longer provides free Deposit & Advance Payment Insurance (as per the legacy DAPI Scheme).

REAL member contractors do not need to use the new DAWWI Scheme, provided that they can provide evidence to REAL that they have alternative arrangements in place (for example, Workmanship Warranty Insurance, and Deposit & Advance Payment Insurance, from established providers of such products.)

Kind regards,

Blair Houston LLB, Cert CII
Technical & Compliance
QANW
(01292) 268 020

It does not cover parts only labour..???..Not much good and its expensive.

SRE · Feb 13, 2012

OK, I've got 7 deposits to register, rang NICEIC, yes the warranty they offer is ok - no problems there ..... until I realise that I can't just lodge the deposit for free like I used to.

Are they seriously expecting us to pay £26 a pop just to cover the deposit insurance??? What if I don't take a deposit?

Fuming :-(

pwboston · Feb 13, 2012

Exactly my point in regards to my membership of the NICEIC. Any work we carry out, solar or electrical is covered with the 6 year warranty.

If they want to charge just for handling a deposit then things aren't good at all.

I upto date haven't taken a deposit and have the NICEIC warranty so shouldn't have to go through this scheme.

SRE · Feb 13, 2012

I don't need to take a deposit and it doesn't leave my client account until the job has been registered but I take one because it shows commitment from the customer to go ahead.

TJLinks · Feb 14, 2012

If we have an alternative insurance policy in place, do we still have to be members of REAL?

pwboston · Feb 14, 2012

You would still need to be in REAL, they are the monitoring body making sure you comply with the requirements of the system, as long as you have insurance backed warranty etc then they cannot say where you purchase it, but they are the ones making sure people have it.