Whistleblowing in Insurance| Meaning and Protection in 2023

whitleblowing insurance

In insurance, there are terms you are not used to and would like to understand what they mean before venturing into any plan of some sort. One such term is whistleblowing insurance.

This article will cover the definition of whistleblowing and how you can basically go about it. Keep reading.

What is a Whistleblowing Claim?

A whistleblower claim is a written filing or complaint that details and exposes certain sorts of alleged fraud or malfeasance. Depending on the sort of fraud, there are various forms of whistleblower claims.

You may have a whistleblower case if you have the correct information regarding fraud or misbehavior that is covered by an applicable whistleblower award scheme.

Employment practices liability insurance (EPLI) policies cover whistleblower claims, which are a sort of retaliation claim.

Related Article: EMPLOYMENT TRIBUNAL COSTS: Employment Tribunal Costs For Employers In 2023

What Does the Whistleblowing Insurance Policy Cover?

The Insurance Authority establishes and upholds high standards of transparency and integrity in the insurance industry. The following is what this policy covers.

  • Corruption, theft, fraud, forgery, bribery, and blackmail are examples of criminal offenses and unlawful conduct.
  • Failure to adhere to legal or regulatory requirements;
  • Internal policy or rules are broken materially (for example, financial controls, procurement rules, and confidentiality responsibilities);
  • An act or omission that poses a significant and specific risk to the lives, health, or safety of IA employees or the general public; and/or

What Does the Whistleblowing Insurance Policy Not Cover?

What the whistleblowing insurance policy doesn’t cover includes:

  • Any complaints against the Insurance Ordinance’s existing laws and policies; any concerns that the IA does not cover
  • Employee complaints/grievances against unfair treatment; and
  • Complaints involving the expression of displeasure with the manner in which the IA’s staff member(s) have performed or failed to perform their duties.

How to Manage a Whistleblower

There is a six-step plan to managing someone who wants to blow the whistle, as there is huge importance in how you respond to it. The steps include:

#1. Remember

Reassure yourself of your rights and responsibilities under your company’s whistleblower policy and that your actions should be consistent with the Code of Ethics, your firm’s code of ethics, and any regulatory requirements you may have.

Also keep in mind that blowing the whistle can save lives, jobs, money, and brands.

#2. Listen

Check to see if the individual who is expressing the concern with you is making a complaint either because they have a stake in what happened or because they are whistleblowing, which usually entails no direct personal stake in what happened.

Go through the right method for the scenario at hand, and remember to treat it as whistleblowing if the person insists it is.

Try as much as possible to balance how you react to the person in front of you with how you feel about the message that was relayed.

#3. Advise

It is expedient to suggest to the person that they learn about the company’s whistleblower policy and reassure them that this raise of worry will not have a negative consequence until proven to be untrue.

Also, affirm that you can keep the person’s identity private while explaining that the law may sometimes demand disclosure sometimes. You can tell the person that he or she is well in their rights to seek independent advice and they could do so through an independent whistleblowing resource already established by the corporation or through a third-party source.

#4. Re-assure

Clearly outline how long it will take to investigate a complaint and give a copy of the firm’s processes for dealing with a whistleblower’s complaint.

Re-assure the individual that the outcome of the investigation into the concern will be communicated to them except where data protection involves a third party it may not be possible.

#5. Act

This strategy of whistleblowing should be reported to the proper persons of power inside the company. This could either be the compliance manager or the person appointed as your company’s whistleblowers champion.

You may need to record the whistleblowing technique in the firm’s management systems and start an inquiry into the source of the concern while devoting the right resources and experience to it.

#6. Feedback

Remind people doing the inquiry that the person who expressed the concern will receive feedback, and agree with them on when, what, and who will provide it.

What is a False Claims Act?

The false claims act is the most regularly used statute by whistleblowers who want to report government fraud or malfeasance.

It allows a private person to file a whistleblower case on behalf of the government and get a part of any recovery which is usually about 15-30%.

False Claim covers the basic requirement for establishing whether the effect is a financial loss for the government.

Basically, such loss occurs when the government overpays for a product or service or pays for a defective or otherwise different product or service.

Also Read: Guitar Insurance: Acoustic And Bass Coverage

Whistleblowing and The Law

The Public Interest Disclosure Act 1998 has a particular meaning to whistleblowers and here’s what it states.

Those considering blowing the whistle should know the difference between reportable concerns and privileged disclosures. The Financial Conduct Authority (FCA) mandates that regulated firms have systems in place to receive and respond to reportable concerns from any person regarding the firm’s conduct.

Concerns that should be reported include;

  • Anything that might be a ‘protected disclosure,’ such as rule violations
  • A violation of the company’s policies and procedures.
  • conduct that is harmful to the firm’s reputation or financial well-being or is likely to be harmful to the firm’s reputation or financial well-being.

A shielded exposure is one sort of reportable worry but not all reportable issues are safe disclosures.

What To Do If You Receive an Unfair Treatment After Whistleblowing

If as an employee, you raise concerns and received unfair treatment, you can do what you find in this section of the article.

You can take your case to an employment tribunal, the Advisory, Conciliation, and Arbitration Service (ACAS), or your trade union. However, it may be difficult to prove the unfair treatment if you submitted your complaint with a hidden identity.

Any claim for unjust dismissal must be filed within three months before your employment terminates.


The above are things you should know about whistleblowing insurance, what you can do when you get unfair treatment, and what part of the law gives you the protection you seek after whistleblowing.

I hope you satisfy your curiosity by reading this.



Leave a Reply

Your email address will not be published. Required fields are marked *