Claimants under group income protection schemes will not have access in the near-term to the Financi...
Claimants under group income protection schemes will not have access in the near-term to the Financial Ombudsman Service despite insurance industry pressure.
The FOS said it has no immediate plans to allow group income protection scheme claimants direct access to the regulatory watchdog, in the face of calls for this from the ABI and UNUM.
The FOS said it was more important to get its own "wheels oiled and in motion" rather than concentrating on "peripheral complexities".
A spokesperson for the FOS said: "It is something we are looking at and we will eventually consider it in full. But this is a long process and there are many areas to review before we can do that."
Chancellor Gordon Brown announced two years ago that all eight ombudsman bodies would be brought under the umbrella of the FOS, a one-stop regulatory shop that would streamline the consumer complaints procedure.
Under current proposals put forward by the FOS, employees in group schemes have to establish rights under separate legislation, the Contract (Rights of Third Parties) Act, before their complaint can be heard. Claimants unhappy with the current procedure also have the option to pursue the claim through the courts.
UNUM said the current proposals did not go far enough and access to the ombudsman should be given to all employees from point of claim. As an interim measure, it said it would offer individuals belonging to a group scheme the right to use the Insurance Ombudsman Bureau, subject to IOB and employer agreement.
A spokesperson for UNUM said: "This is not about encouraging complaints. We are absolutely committed to maintaining consumer confidence in income protection insurance.
"Our aim will be to go the extra mile and allow access to the ombudsman to all claimants involved in a dispute."
But the FOS spokesperson added: "Our primary concern is to get up and running and we are being cautious not to bite off more than we can chew.
"This is just one of many areas, and a complex one at that, as it depends on the nature of the individual's circumstances."
