Insurance industry rapped over compensation delays
An inspection of insurance claims over a 15-month period showed one-in-six victims had to wait longer than 10 days once insurers and lawyers agreed who was at fault.
Government financial watchdogs looked at settlements made between January 2006, and March last year on third-party motor policies, which cover drivers for any damage or injury they cause to others in accidents. The Financial Regulator also found insurers failed to tell two-thirds of policyholders when a claim against their insurance had been settled.
Yesterday, the Consumers’ Association of Ireland said the insurance industry’s practices in dealing with both policyholders and claimants were “unacceptable”.
“This demonstrates why we need a strong consumer protection code that is robustly enforced to root out these anti-consumer practices,” said CAI chairman James Doorley.
In July last year the Financial Regulator brought in a consumer code compelling insurers to pay claims within 10 days of an agreement being reached.
The rules also state policyholders must be told when a claim on their insurance is settled while accident victims should also be informed in writing of the outcome of their claim.
The CAI is calling on the regulator to carry out in future inspections of third-party motor policies to make sure insurers are obeying the rules.
The Financial Regulator’s spokeswoman, Jill Forde, said the inspection was one of a number looking at practices within the banking, insurance and investment industry.
She said the motor insurance investigation covered all the major insurers, which have since been informed of the findings and recommendations in the report.
Among the recommendations was a request for insurers to explain to claimants the role of the Personal Injuries Assessment Board.
The board assesses compensation amounts in insurance claims and was brought in to prevent lawyers cashing in on claimants.
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