In a letter to chief executives of insurers published on its website, the regulator said any claim settlement offer made must be fair, take account of all relevant factors and represent the best estimate of the claimant's reasonable entitlement.

"Although the central bank expects that most policy wordings are clear in terms of what cover is provided and what cover exclusions are in place, where there is a doubt about the meaning of a term, the interpretation most favourable to their customer should prevail," the letter said.

(Reporting by Padraic Halpin; Editing by Alex Richardson)