Complaints over insurance rise by one-third

Formal complaints to the Insurance Ombudsman rose by 27 per cent last year, with motor insurance and life polices combining to generate one half of the disputes handled.

In her annual report for 2002, presented today, Ombudsman Ms Caroline Gill, said she had received 1,631 written complaints over the year of which 507 related to motor insurance issues and 394 to life policies.

The number of complaints about life policies was slightly lower than last year.

Travel insurance was the next most contentious area with 153 complaints, up from 118 in 2001 and 73 in 2000.

Ms Gill formally adjudicated in 482 cases, of which 37 per cent were upheld, a down from 41 per cent the previous year.

Some 332 complaints were settled with assistance from the Ombudsman's office or were clarified for both parties, an increase of 48 per cent on the previous year. An additional 274 cases were found to be outside the Obudsman's terms of reference. The average handling time for a complaint was four months.

The Ombudsman examines cases where the amount in dispute is not greater than €160,000. Cases where the basic annual benefits insured in permanent health insurance policies up to €26,000 can also be examined.

Ms Gill said: "The number of written disputes referred to this office continues to rise with an increase in all areas, most notably in life assurance, motor, pensions, permanent health and travel."

The Office received 10,342 phone calls relating to complaints in 2002, an increase of 13.2 per cent.