Life is not always fair, and it never will be, but as the saying goes, ‘every dog has its day’. Following a comprehensive investigation, the Financial Conduct Authority has unveiled that over 270,000 motorists could receive compensation. What’s more, all eligible people may share nearly $268 million in payments. When life throws you a bone, you’d better reach out and catch it! Discover what the eligibility requirements for compensation are today, and even you, too, can benefit from the unexpected good fortune.
Over 270,000 motorists could receive compensation
In September, the Financial Conduct Authority confirmed that insurers automatically deducted money for presupposed pre-existing damages without reasonable grounds. These automatic deductions violated the rules on fair claims handling. As a result, drivers who properly maintained their vehicles’ condition faced increased difficulty in purchasing comparable replacements.
Motor insurers were compelled to change their claims processes as a result, bringing them in line with the Financial Conduct Authority’s Consumer Duty regulations.
“Insurers work hard to deliver the best possible service for their customers… Our members have made changes to their settlement approach and taken the necessary steps to support customers.” – Statement by spokesperson for the Association of British Insurers
Eligible people may share $268 million in payments
This motor insurance compensation alert has thousands of motorists excited, as over 270,000 eligible motorists could receive their share of nearly $268 million, or £200 million, in payments. According to the Financial Conduct Authority, £129 million has already been paid out to almost 150,000 eligible people, with thousands more about to benefit.
The regulator strongly believes that these changes will enhance improvements to assist the proper operation of the retail insurance market, helping customers to navigate their financial lives, while providing them peace of mind and encouraging growth through efficient risk management. According to the deputy chief executive of the Financial Conduct Authority, Sarah Pritchard:
“We’ll step in when consumers aren’t getting fair value – and we are pleased to see that the practices which lead to some unfair payouts have already changed. This means thousands of motorists are getting back what their car was really worth, in cases where cars have been stolen or written off.”
What’s more, catching this bone thrown by life could not be any simpler.
Receiving your share of payments is very simple
The Financial Conduct Authority has been a busy bee, with several ongoing investigations revealing interesting, yet shocking truths. Thankfully, compensation prevails in the end, as seen in another compensation case, where £700 in compensation is up for grabs for 14 million eligible people. Now, it is one thing when life throws you a bone, but in the case of motor insurance compensation, the bone is basically fed to you.
“If you’re owed compensation, your insurer will contact you, or will have done so – there’s nothing you need to do.” – Pritchard
It is truly as simple as that. If your insurer has not reached out to you, or you are not satisfied with the manner in which a claim has been handled, the Financial Conduct Authority recommends speaking to your insurer first. If you are still dissatisfied with the response, then you should contact the Financial Ombudsman Service. Additionally, you do not have to utilise a Claims Management Company to complain or to claim.
If the numbers are any indication, then yes, life is not fair, and some people may even make it increasingly difficult. However, some people, or in this case, regulators, are there to ensure that it is a fair field and no favour. If you believe that you should benefit from the motor insurance compensation and want to complain and/or claim, ensure that you have gathered all the required information. For additional information regarding motor insurance compensation, please visit the Financial Conduct Authority website.
Disclaimer: Our coverage of events affecting companies is purely informative and descriptive. Under no circumstances does it seek to promote an opinion or create a trend, nor can it be taken as investment advice or a recommendation of any kind.
