Published on 05/07/2012
Complaints about income protection insurance policies have risen 63 per cent over the last year, because people were not made aware of their policy details before taking it out.
The report emphasises the importance of using an FSA authorised broker like ActiveQuote when investing in a policy.
According to the Financial Ombudsman Service’s latest quarterly complaints data, 291 complaints were made about income protection insurance between April and June this year, compared to 179 the same period in 2011.
However, of the complaints made in 2012, only 31 per cent were upheld compared to 41 per cent in the same period last year. A spokeswoman for the FOS says:
“We have seen an increase in IP complaints, which is predominantly down to the current economic climate.”
“People who have lost their jobs go to their policy and may find the policy does not cover what they thought it covered them for, or else there may be some exclusions in the policy which prevent them from claiming.”
When taking out an income protection insurance policy it is essential that you are aware of all the terms and conditions in case you need to claim in the future. ActiveQuote Managing Director Richard Theo said:
“Income protection insurance can be a confusing product. That’s why our comparison system compares quotes from all the leading insurers and clearly shows the details of every policy. An FSA authorised expert is always on hand to advise our customers on their choice.”
© ActiveQuote Ltd. 2012Categories: Income Protection