British motor insurers will compensate an estimated 270,000 customers a total of £200 million ($268.5 million) after regulators found the companies underpaid claims for stolen and totaled vehicles.
The Financial Conduct Authority (FCA) said in September that insurers made automatic deductions for assumed pre-existing damage without proper justification, violating rules on fair claims handling. The practice particularly affected drivers who maintained their vehicles in good condition, making it difficult for them to purchase comparable replacements.
Insurers have already paid £129 million ($173.2 million) to nearly 150,000 customers and overhauled their claims settlement processes, the FCA said in a statement.
“We’ll
Subscribers need to be logged in to see rest of this article. Please Login to access. If you're not a subscriber, click here for information on our satisfaction guaranteed subscription options.
Leave a Reply
You must be logged in to post a comment.