Who qualifies as a consumer under the CIDRA (2012) act?

The definition of a consumer under the Consumer Insurance (Disclosure and Representations) Act (CIDRA) 2012 specifically caters to individuals who are entering contracts primarily for non-business purposes. This aligns with the act's intention to protect consumers who may not possess the same level of understanding or negotiating power as businesses in the context of insurance contracts.

When evaluating who qualifies as a consumer, the act emphasizes that the person must be acting outside of their profession or trade. Therefore, an individual who is entering a contract mainly for personal, family, or household purposes falls under the consumer category. This distinction safeguards individuals from potentially unfair terms and conditions that could arise if they were, for example, engaging in transactions related to their professional activities.

In contrast, individuals acting for work-related purposes, business entities, and organizations seeking insurance for employees are not classified as consumers under this specific act, as their activities are tied to commercial interests rather than personal consumer protections. Thus, the choice that aligns with the CIDRA (2012) act is the individual entering a contract mainly for non-business purposes.