FSA confirms 3 million payment protection insurance plans under review
The Financial Services Authority (FSA) has today confirmed that around 3 million people may well be eligible for compensation payments which could top £2 billion over the alleged mis-selling of payment protection insurance (PPI). So far the authorities have received in excess of 100,000 complaints regarding PPI and there are many more expected in the short to medium term.
The authorities have today issued new rules on how the flood of complaints should be handled and indeed what form and what size of compensation can be expected. This is a situation which many banks in the UK have attempted to delay and indeed a number of banks clubbed together to demand a review of the PPI ruling by the FSA. In simple terms, the FSA has introduced new rules which will come into play later in 2010 which will offer customers more information on PPI products, a cooling off period and the ability to look elsewhere for their cover.
However, there are many points of friction between the UK financial industry and the FSA over changes to PPI. Quite how these will impact upon the final ruling and future of PPI very much remains to be seen.
Halloween proves a difficult period for insurance companies
Insurance company Aviva has today issued a statement warning customers to be wary of damage to their cars and burglaries over the Halloween and bonfire night period. The company has released statistics showing that on Halloween and bonfire night especially there have historically been significant increases in claims with regards to damage to motor vehicles and burglaries.
Life insurance fraud 'very low'
It has been suggested that instances of life insurance fraud are rare in the UK because the industry takes strong measures to prevent fraudulent claims being made.The recent media furore surrounding the case of John and Anne Darwin, who have been arrested in relation to potential life insurance fraud, has ignited interest in the sector's efforts to prevent people from fraudulently claiming on thei...Read More
Osborne could merge income tax and national insurance
30/06/2014 Chancellor George Osborne could announce plans to merge income tax and national insurance (NI) into a single payment if they are re-elected in the next general election. The plan was first suggested by the Office of Tax simplification in March 2011, however, consultation on tax reform has so far been pushed back due to the complexity of integrating the two separate systems. The...Read More
Is your life insured?
While the vast majority of people in the UK know fine well that life insurance could be something of a godsend for those left behind in the event of a tragedy it seems that many people still have inadequate life insurance cover in place. Those who have a mortgage in the UK will have some form of insurance attached to this mortgage which will see the outstanding balance paid off in the event that b...Read More
Why Is Car Insurance Fraud On The Increase?
If ever there was a self fulfilling prophecy then the car insurance market may well be it!
A recent report by the Association of British Insurers (ABI) claims that car insurance fraud in the UK has increased by 70% over the last 3 years. As the cost of running a car continues to spiral upwards many drivers are being left with very few ways of paying off their debts. The fact that...