What does the ABI Personal Effects Contribution Agreement aim to achieve?

The ABI Personal Effects Contribution Agreement is designed to establish clear rules regarding contribution for personal insurances. This agreement aims to provide a structured approach to how multiple insurance policies covering the same personal effects are managed. When an individual has more than one insurance policy that may cover a loss of personal belongings, the contribution rules determine how the claims are settled across the different insurers. It ensures that the policyholder receives fair compensation without being over-compensated for their loss. This encourages clarity and consistency in the claims handling process, improving efficiency and understanding for both insurers and policyholders.

The other options do not accurately reflect the purpose of the Agreement. It does not aim to eliminate all claims or dictate prices, nor does it primarily focus on reducing the number of claims processed. Instead, it is centered around the principles of fair contribution among multiple insurance policies.