Every year we spend £33.5 billion pounds on insurance to bring us peace of mind should the worst happen, but failing to tell insurers all of the relevant information at the application stage is getting some people into trouble.
In 2008 the Association of British Insurers brought in new guidelines to make the process of applying for insurance simpler and clearer.These rules are meant to ensure that customers are treated fairly over issues of non-disclosure and they have led to fewer complaints about health and medical insurance being rejected.
But the independent body responsible for reviewing the legal system – the Law Commission – says the current voluntary guidelines don’t go far enough and a change in the law is necessary for our protection.
Fiona Foster investigates the issues surrounding "non-disclosure" and speaks to people who face losing everything as a result.
Links:
Association of British Insurers - http://www.abi.org.uk/
Law Commission: http://www.lawcom.gov.uk/
Financial Ombudsman: http://www.financial-ombudsman.org.uk/
