The Association of British Insurers (ABI) has unveiled a new claims code for general insurance includ...
The new code will come into effect on 1 January 2001 and compliance is required of all ABI members. It sets out the minimum standards of service an individual can expect from a general insurer when they make a claim whether they are the policyholder or a third party.
The code applies to all PMI, household, motor, and travel policies and requires providers to respond to a claim within five working days. Once a claim has been agreed, consumers can expect payment within 10 working days and any complaint must be dealt with within 40 days.
Malcolm Tarling, spokesman for the ABI, said: "The code reflects the priorities of the ABI of raising industry standards and consumer awareness. When a claim arises the insurance provider is put in the shop window and how they deal with it creates an impression of insurers as a whole."
The code has been generally well received but many PMI providers feel that they already meet or go beyond these minimum standards. Steve Turner, technical manager, healthcare and assistance at Royal & Sun Alliance, said: "We are very supportive of the code, but it is not going to mean an awful lot to us because we are already there or thereabouts.
"Complaints occur because of delays and when insurers do not explain what is going on or how they intend to deal with it. The key is to explain to customers what you are doing and listen to their reservations."
However, Geoff Brown, managing director of BUPA Healthcare, has reservations over its suitability for PMI claims. "It sets minimum standards and that can never be to the detriment of the claimant. But some of the timings are inappropriate for PMI because you have to react faster if people are going into hospital. We operate on a pre-authorisation basis and a lot is done over the phone," he said.
The ABI does not have any plans to launch a similar code for long-term protection business in the near future. Vic Rance, press officer at the ABI, said: "With long-term business, the question of raising standards is concentrated at the selling stage and we launched the Raising Standards quality mark scheme to deal with that last month."
l Recover, a new claims company launched in November, has called for the self-regulation of the claims management industry.
The industry is not currently regulated either by the Government or by the industry. Recover says that many companies are using claims assessors who do not have a legal background, and are taking a high percentage of clients' compensation, which is damaging the reputation of the industry.
Recover is calling for self-regulatory procedures to be set up immediately and intends to lobby the Government to set regulatory guidelines.
