Insurance ombudsman notes 8% complaints rise

The insurance ombudsman expects the number of formal complaints against the industry this year to reach the 2,000 mark.

The ombudsman, Ms Caroline Gill, said yesterday in a mid-term review that her office had received 1,000 complaints to date this year, 8 per cent ahead of the same time last year.

"The number of written disputes referred to this office continues to rise with an increase in all areas, most notably in life assurance, motor, pensions, permanent health and travel," she said in a statement.

Commenting on the increase, she told The Irish Times she expected the number of complaints for the year as a whole to be 25 per cent higher than 2002. Given that the total number of complaints received in 2002 was 1,631, that would bring the current year's total to 2,000.

Ms Gill said the increase in written complaints and telephone calls reflected a heightened public awareness of insurance issues, and of the ombudsman scheme. She said a small number of complaints related to cost increases.

The office received complaints covering issues such as pre-accident value of cars, the structure of no-claims bonuses and income continuance in permanent health insurance policies.

She indicated that the board of the consumer-only scheme could seek to have it broadened out to include commercial policies valued at up to €1 million. Ms Gill said the board was exploring this possibility.

The insurance ombudsman's service is free. It has the jurisdiction to examine cases where the disputed amount is up to €160,000. In the case of permanent health insurance, it deals with cases where the basic annual benefits insured are up to €26,000.