Andrews urges adoption by the ABI and the motor insurance industry
The Credit Hire Organisation (CHO) has written to transport ministers and members of the Transport Select Committee seeking their support for a Statement of Consumer Rights, which the CHO launched at its annual conference this month.
Martin Andrews, director general of the CHO, said his members were fully supportive of the initiative in light of the findings of the Competition and Markets Authority (CMA) report into the private motor insurance market, which concluded that consumers were wholly unaware of their legal rights in the event of an accident.
“We worked with the CMA, alongside legal experts, insurers and others to enable the CMA to develop a statement of consumer rights to help consumers navigate their way through what is a complex process, from accident through to settlement of a claim. This was the only consumer focused output of the CMA’s two year work effort and we feel it is important it is not dropped simply as a result of the CMA concluding no remedies are required. We have urged MPs to support the statement and put pressure on motor insurers and the ABI to adopt similar measures to fully inform their policyholders.”
Mr Andrews said he hoped the ABI would reconsider its decision not to endorse the document. “The statement is almost identical to the version that was drafted by the CMA, and while we understand insurers may want to put their own stamp on a statement, it’s essential that consumers are not misled over their legal rights.”
He added: “That can be best achieved if the industry works in concert to educate all consumers of their rights and responsibilities under the law.”