How to make a complaint about your insurance

Saturday, January 03, 2009

Step 2: Go to an independent complaints scheme.

These bodies have been set up to resolve disputes between you and a financial firm.

Nearly all financial services firms belong to an independent complaints scheme. Some must, by law, belong to one of these schemes; others agree voluntarily to do so. There are two main types of independent complaints schemes:

- ombudsman schemes

- arbitration schemes

From 1st December 2001 onwards, many financial firms belong to the Financial Ombudsman Service (FOS).

An independent complaints scheme will:

• look at the details of your case;

• ask for extra evidence if necessary;

• decide whether your complaint is justified; and

• if it is justified, order the firm to put matters right.

If necessary all schemes can order the firm involved to make you a financial award (up to a maximum of £100,000 with some schemes).

The firm should tell you who to contact if you're not satisfied with the outcome of their investigation into your complaint.

All independent complaints schemes work within a set of rules. These state what type of complaints they can and can't deal with - for example, problems which happened a long time ago might be outside the scope of a scheme. Check with the scheme to see if your complaint is covered.

You can contact the independent complaints scheme in writing, by phone or sometimes by e-mail. It's a good idea to ask first for a copy of their guide to making a complaint. This will tell you what you need to do and may contain a special form to help you set out the details of your case.

Remember, before you can take your complaint to an independent complaints scheme, you must have first:

• given the firm a chance to put things right

• gone through the firm's own complaints procedure

You must have reached the stage where the firm sends you a final response, saying it can't reach agreement with you. This is sometimes called a 'letter of deadlock'. If the firm does not give you this letter within a reasonable time, usually two months, complain to the relevant independent complaints scheme.

The firm's letters or other paperwork should state which body regulates them, and may indicate the relevant independent complaints scheme.

Alternatively, if you are not satisfied with the way a firm has responded to your complaint, you could take your case to court. In most cases, however, using the independent complaints scheme is quicker. And there is usually no charge for using the scheme.

Insurance and your rights