Motor insurance continued to generate the highest number of complaints to the insurance ombudsman last year.
According to the 1999 annual report, 927 written disputes were referred to the Office of the Insurance Ombudsman, down slightly on the 1998 tally of 936.
Of these, 247 related to motor insurance, followed closely by life assurance at 203. There were 80 disputes relating to medical expenses, 54 to general insurance and 51 to pensions, the annual report shows.
In all, ombudsman Ms Caroline Gill dealt with 1,035 cases, including some carried over from the previous year. Of these, 339 cases were formally adjudicated in 1999, while a further 262 were settled informally with mediation assistance from the ombudsman's office. Around a quarter of the complaints were outside the terms of reference of the scheme while a small number were withdrawn.
Of the adjudicated complaints, the ombudsman found in favour of the company in 60 per cent of cases compared with 51 per cent in 1998 and 61 per cent in 1997.
Ms Gill said the average dispute handling time had been reduced to four months from six-and-a-half months, helping to reduce the backlog of cases carried over to 1999 by a quarter. The maximum amount that can be awarded in compensation to complainants is £100,000 at present, with a limit of £10,000 annual benefit on permanent health insurance. However, Ms Gill said both amounts were being reviewed at present in light of rising inflation and increasing house prices.
The £10,000 limit is likely to be raised to £20,000 although the effective date has yet to be decided, while the overall £100,000 limit is also under consideration.
The lowest amount awarded last year was £16, which related to a travel insurance claim, while the average payout was £2,000.
Ms Gill said her office received 5,525 telephone enquiries, more than double the number received two years earlier.
The cost of running the office, which is funded by the insurance industry, rose to £477,000 last year from £405,000 in 1998.
The full text of the annual report of the Office of the Insurance Ombudsman is available at: www.ire land.com/newspaper/special/
