Insurance industry rapped over compensation delays

CONSUMER champions yesterday lashed the insurance industry for the length of time firms take to pay compensation to accident victims.

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.