FOS reports 26% jump in motor insurance complaints

The Financial Ombudsman Service says that the number of consumers making complaints about the way their car insurance companies have been treating them jumped by 26 per cent – something the FOS referred to as typical for times of economic strife.

The 2011-2012 financial year resulted in a sum of 7,264 motor car insurance related complaints.  Informally negotiated settlements have become a thing of the past, the ombudsman added, saying that both claimants and insurers alike are fighting harder for a decisive victory, even in the face of insurers persisting in the pursuit of cases to their detriment.

Out of the new cases received by the FoS, 3 per cent were motor insurance issues, while travel insurance and contents insurance both contributed 1 per cent each to the total.  Buildings insurance-related cases amounted to 2 per cent of complaints.

The number of buildings insurance complaints increased by 31 per cent in comparison to last year, while contents insurance and critical illness insurance complaints both rose by 23 per cent and 55 per cent respectively.  The general insurance sector saw claims being the largest source of complaints at 64 per cent, while advice and administration complaints and sales issues accounted for a respective 20 per cent and 16 per cent.

However, it wasn’t all bad news for the insurance industry overall.  The silver lining was that the number of complaints made against companies offering extended warranty insurance and travel insurance feel by both 2 per cent and 4 per cent.

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