The stark warning evident in the latest Insurance Ombudsman's report is, "know what you're buying". Ms Caroline Gill's office recorded a 15.5 per cent rise in insurance sales complaints last year. Complaints increased to 936 in 1998 from 810 in 1997.
Many complaints concerned alleged misselling or non-disclosure of certain aspects of the policy. The majority of complaints were in the motor insurance industry.
Of the 936 complaints to the Insurance Ombudsman in 1998, 821 were concluded. Adding the disputes active at the end of 1997, 1,257 were considered in 1998 but 222 were outside the office's terms of reference.
In comparison, the Government's ombudsman Mr Kevin Murphy received 3,000 complaints over the same period. However, his remit covers all Government Departments, schemes, local authorities and many State companies.
The high level of complaints reflects strong growth in the sale of new and existing insurance products, according to the Insurance Ombudsman. However, two main trends emerged overall. It is not always clear what is being sold and the language used is often needlessly complex and unclear to the average reader.
The seller is obliged to ensure that the buyer understands the product on offer. One of the Ombudsman's objectives is to "encourage companies to simplify and demystify the language used in policy and supporting documents". It is hoped this will help customers understand the nature of the product they're buying and thus avoid disappointment.
The Ombudsman stresses that the buyer also has an obligation to make full disclosure and to take all reasonable steps to understand the product being purchased before committing to any policy. Difficulties often arise because not all sellers and buyers fulfil their obligations.
If you are unhappy with the way an insurance product was sold to you, which product was sold or how your insurance claim was handled the Insurance Ombudsman may be of assistance.
The Ombudsman provides independent advice and may conciliate between you and your insurance company or adjudicate in relation to your dispute. The help of the Ombudsman may be sought provided individuals meet certain requirements.
The applicant must have a personal insurance policy taken out with a company in the Republic. The company must be a member of the Insurance Ombudsman of Ireland scheme and the policy-holder must have been unable to settle a dispute with the insurance company and exhausted the company's internal complaints handling system.
The company must have confirmed in writing that no agreed settlement has resulted.
You are not eligible to apply to the Insurance Ombudsman if you have initiated court proceedings or referred the dispute to arbitration or to the Minister for Enterprise and Employment for a decision under section 72 of the Insurance Act, 1936.
