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.
Millions risk insurance by using their car for work
As many as five million workers are risking invalidating their insurance by using their own cars for company business.According to insurance comparison site, Go Compare, these people are not properly insured, because most private car policies do not cover business when the driver is travelling anywhere other than their usual place of work, and each month, these workers are covering an average 188...Read More
Abbey issues tips for flood-risk homeowners
Homeowners who fear they are risk of flooding in the event of a repeat of this week's storms can ensure their safety by following a series of simple tips, it has been claimed. Abbey Insurance this week confirmed that as a result of the deluges it has received the highest number of calls regarding home insurance since the summer. In response, the home insurance provider has issued a set of practica...Read More
UK parents warned on fronting car insurance for children
The Motor Insurers Bureau has issued a very strong warning to parents in the UK who are directly involved in the insurance of their children's cars by basically fronting an insurance policy by claiming to be the main driver. While for many people this can lead to significant savings for their children it is actually a form of car insurance fraud. Many people are totally unaware that the action...Read More
BCC demands increase in VAT not national insurance
The British Chamber of Commerce (BCC) has today pleaded with the UK government to increase VAT to 18.5% instead of increasing the rate of national insurance contributions. Figures from the BCC suggest that the scrapping of next year's national insurance contribution increase would benefit businesses by £5.1 billion while an increase of just 1% in the rate of VAT would bring in around £4.5 billio...Read More
Insurance fraud costs the UK consumer
As the UK recession continues unabated, with sporadic signs of improvement, we have seen a massive increase in the number of fraudulent insurance claims in areas such as home insurance and car insurance to name but a few. This is a common pattern as and when the UK economy goes into recession and is something which the insurance companies have attempted to control and reduce over the years but hav...Read More