Claim Endowment Compensation Direct, Says ABI
Association of British Insurers recommends third party claims handlers should be avoided in endowment complaint cases
19th October 2005
The Association of British Insurers (ABI), which represents the insurance industry, has advised endowment policyholders making a complaint to deal direct with their endowment company rather than using the services of a third party claims specialist.
The ABI says there is no need for such services, as procedures are in place for complainants to handle the whole process themselves, and avoid the sometimes hefty charges that such companies can charge.
Also, it was no more likely that a compensation claim made through a claim firm would succeed - in fact the opposite was marginally the case, with figures showing that 49% who claimed direct were successful, compared to 46% who used a claim management service.
With claims services charging on average a quarter of any compensation as a fee, said the ABI, then there would 'clearly still be a shortfall for the customer'.
Read More: Money Guardian: Claim direct for compensation, say endowment firms
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