To ask the Chancellor of the Exchequer what assessment he has made of the options for redress available to consumers who, due to imperfect information at the time of purchase of an off-the-shelf insurance policy, have a claim rejected subsequently. (106523)

The Financial Services Authority’s (FSA) rules require that the firm providing an off-the-shelf insurance policy must provide the consumer with a policy summary that, among other things, highlights significant features and benefits of the policy and significant or unusual exclusions, so that customers can check that it is appropriate to their needs.

In situations where a consumer has a claim against an off-the-shelf insurance policy rejected by the insurer there is generally a right of redress to the Financial Ombudsman Service (FOS) once the consumer has exhausted the options open to them through the firm’s own complaint resolution procedures.

The role of the FOS is to deal with complaints impartially and to make what it believes is a fair and reasonable decision, based on the relevant facts in each individual case.

The decision of a FOS Ombudsman is binding upon the firm but is non-binding upon the consumer. If the consumer is dissatisfied with this decision (s)he may still take his/her case to the courts.