• Latest
  • Trending
Looking for an Insurance Scheme

Looking for an Insurance Scheme? Here is how the distributors can rip you off

09/05/2019
Northern VA Dog Walking Company Educates On Pet Sitting

Northern VA Dog Walking Company Educates On Pet Sitting

07/01/2021
Author Edwin Cruz Releases New Memoir – In Society’s Web

Author Edwin Cruz Releases New Memoir – In Society’s Web

23/12/2020
“Margaret Beaufort of Bourne, Collyweston, Maxey and Deeping: The Tudor Dynasty” by Margaret Wainwright is published

“Margaret Beaufort of Bourne, Collyweston, Maxey and Deeping: The Tudor Dynasty” by Margaret Wainwright is published

23/12/2020
DSPs are undermining their own 5G investment. Here’s why (and how to fix it).

DSPs are undermining their own 5G investment. Here’s why (and how to fix it).

23/12/2020
Christmas gaming desks for the kids

Christmas gaming desks for the kids

22/12/2020
Why antiviral gloves are essential accessories this winter

Why antiviral gloves are essential accessories this winter

17/12/2020
The Complete Guide To Canoe Camping

The Complete Guide To Canoe Camping

11/12/2020
7 Chocolate Whiskey Cocktails You Can Easily Make At Home

7 Chocolate Whiskey Cocktails You Can Easily Make At Home

11/12/2020
Top 7 Facts About Pinot Grigio Wine

Top 7 Facts About Pinot Grigio Wine

03/12/2020
Revealed: 13-intriguing sleep-related facts

Revealed: 13-intriguing sleep-related facts

27/10/2020
Why Businesses Should Consider Switch from Oil to Gas

Why Businesses Should Consider Switch from Oil to Gas

22/10/2020
From Crop to Cup: Where Does My Fairtrade Coffee Come From?

From Crop to Cup: Where Does My Fairtrade Coffee Come From?

04/10/2020
  • Authors
  • Write for us
  • Contact
Friday, January 22, 2021
PostRadar
  • News
  • Business
    • Employment
    • Recruitment
    • Industrial
    • Marketing
  • Finance
    • Banking
    • Crypto
    • Personal Finance
  • Property
    • Architecture
    • Construction
    • Property Market
  • Lifestyle
    • Food & Drink
    • Healthcare
    • Healthy & Beauty
    • Consumer Advice
    • Fashion
    • Sports
    • Books
  • Travel
    • Tourism
  • Write for us
No Result
View All Result
  • News
  • Business
    • Employment
    • Recruitment
    • Industrial
    • Marketing
  • Finance
    • Banking
    • Crypto
    • Personal Finance
  • Property
    • Architecture
    • Construction
    • Property Market
  • Lifestyle
    • Food & Drink
    • Healthcare
    • Healthy & Beauty
    • Consumer Advice
    • Fashion
    • Sports
    • Books
  • Travel
    • Tourism
  • Write for us
No Result
View All Result
PostRadar
No Result
View All Result
Home Finance

Looking for an Insurance Scheme? Here is how the distributors can rip you off

Dan by Dan
09/05/2019
in Finance
17
9
SHARES
33
VIEWS
Share on FacebookShare on Twitter

Purchasing an insurance policy is one of the top priorities of any earning individual. Life insurance, home insurance, travel insurance, health insurance and so on. The list has now extended to cover even to entities like second-hand vehicles through Guaranteed Auto Protection Insurance (GAP) policies. But do you know what percent of it is actually the cost of the policy? Less than 60%, according to the latest report by the FCA. In this article, let us see how this happens.

What this all about?

The FCA released its report this month titled General Insurance Distribution Chain – Thematic Review which consists of many eye-opening and eye-watering facts about the insurance industry.

It covers a limited area of general insurance and leaves bigger categories like house insurance or car insurance. This also includes the insurance offered by car dealers and travel agents bundled in with a short trip. Another effective example is the sale of insurance of damage or technical help with a mobile phone. Carphone Warehouse was fined £29 for misselling it.

What are the facts uncovered in the report?

The insurance policies (even the innovative ones like the GAP), are being sold at highly inflated rates and many times they cannot be claimed.

Let us take for example, the Guaranteed Asset Protection (GAP). This has to come into the picture when your new car is sold or stolen within one or two years of its purchase. It intends to cover the “gap” amount, when the amount paid by the regular car insurer will be lesser than the money you paid for it.

Calculations reveal that more than 50 percent go to the dealer alone. For example, if you pay £360, £81 goes to the insurer(company), the distributor gets £6, and the car dealer gets £231 as the commission. Insurance premium tax added to this gives £360. This reveals that 59.2% goes to the dealer and without considering the tax amount, it would be a whopping 71 percent.

This, however, is not the only problem. We may call this the intelligence of the people profited by this. The problem is that many people who are sold these policies are not even eligible to claim the amount. For example, travel insurances are offered to people without a health checkup of the clients, who may not be eligible to claim and offering GAP’s to second hand vehicles where there is actually no “gap” to cover.

What is the problem?

The first and foremost problem that we find here is the lack of awareness on the part of the clients. They purchase policies without considering the pros and cons.

The second problem is the huge gap between the insurer and the retailer. The long chain makes it the people involved to forget what their policies actually are and whom they actually cover.

What could be done?

The FCA has to urgently intervene and ban commissions on the sale of insurance schemes, just the way it was made for pensions and investments. However, FCA does not seem to have much power here because many retail sales are exempt and none of them retorts the ABI.

So, as customers, it is our utmost duty to be aware and buy only what is required, by reading all the terms and conditions. There will be cheaters as long as there is ignorance.

Share4Tweet2Share1

Related Posts

Five reasons to start trading forex

Five reasons to start trading forex

01/06/2020
21
Things to Consider When Choosing a Commodity Broker

Things to Consider When Choosing a Commodity Broker

14/05/2020
48
Merlin Entertainment Stocks

Waxworks didn’t pay off; Merlin Entertainment Stocks crash by 6.7%

29/05/2019
72
Atlas has a new captain

Atlas has a new captain

29/05/2019
49
Things Fallout for Tech Giant Huawei

Wall Street Glissades Down as Things Fallout for Tech Giant Huawei

29/05/2019
58
Trump Scales Back Huawei Restrictions

Trump Scales Back Huawei Restrictions amidst Trade War with China

29/05/2019
38
No Result
View All Result

Looking for writing opportunities

Get in touch to find out more.

Start Writing

Latest News

  • Trending
  • Comments
  • Latest
TalkTalk

TalkTalk: How To Make Customer Services Listen To Your Complaint?

07/05/2019
American stock market

How the American stock market is being affected by the current presidential run of Donald Trump

10/05/2019
Relationship Between a Debtor and a Creditor

Debt, A Relationship Between a Debtor and a Creditor

10/05/2019
Organising A Temporary Industrial Plant Shutdown

Organising A Temporary Industrial Plant Shutdown

05/12/2019
DB Transfer Inflows

DB Transfer Inflows At BJ Bell Half Over 12 Months

Hertz Deposit

£500 Hertz Deposit that somehow went “Undetected”

Fuel Efficient Petrol Cars

The Most Fuel-Efficient Petrol Cars You Can Buy

New Tax Reforms

Buy To Let Business Took A Hit In London With The New Tax Reforms

Northern VA Dog Walking Company Educates On Pet Sitting

Northern VA Dog Walking Company Educates On Pet Sitting

07/01/2021
Author Edwin Cruz Releases New Memoir – In Society’s Web

Author Edwin Cruz Releases New Memoir – In Society’s Web

23/12/2020
“Margaret Beaufort of Bourne, Collyweston, Maxey and Deeping: The Tudor Dynasty” by Margaret Wainwright is published

“Margaret Beaufort of Bourne, Collyweston, Maxey and Deeping: The Tudor Dynasty” by Margaret Wainwright is published

23/12/2020
DSPs are undermining their own 5G investment. Here’s why (and how to fix it).

DSPs are undermining their own 5G investment. Here’s why (and how to fix it).

23/12/2020

Quick Links

  • Home
  • Authors
  • Contact
  • Write for us
  • Sitemap

Browse By Topic

  • News
  • Business
  • Finance
  • Lifestyle
  • Entertainment
  • Politics
  • Property

Recent News

Lifestyle

Northern VA Dog Walking Company Educates On Pet Sitting

07/01/2021
17
Books

Author Edwin Cruz Releases New Memoir – In Society’s Web

23/12/2020
27

© 2019 PostRadar

No Result
View All Result
  • Write for us
  • Get in touch
  • Home
  • Topics
  • Business
  • Education
  • Energy
  • Entertainment
  • Finance
  • Legal
  • Lifestyle
  • Politics
  • Property
  • Science & Technology
  • Transport
  • Travel

© 2019 PostRadar.

Login to your account below

Forgotten Password?

Fill the forms bellow to register

*By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish.Accept Read More
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non-necessary

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.