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Insurance Business | 23 Jul 2013, 12:00 AM Agree 0
Brokers have alleged that the not-for-profit organisation unfairly presses for and pursues complaints against them.
  • Paul | 23 Jul 2013, 10:48 AM Agree 0
    I have found FOS to act with the utmost fairness. A client at my former business was egged on to make a complaint by another broker network. I saw the internal emails from the other broker organisation. The complaint was up held but we were never billed as the assessor at FOS agreed the client and the other broker had behaved badly. The complaint was in relation to a bill for broker services. I had provided renewal and the client took my terms to another broker after renewal. I billed the client for lost brokerage. The FOS assessor advised us to change our terms of trade.
  • John duggan - AIS insurance | 23 Jul 2013, 10:51 AM Agree 0
    We have had a couple of dealings with FOS & in both cases been screwed.Latest we paid $1100 for the privilege of their services & they awarded the client half of wht they were claiming $ 350. FOS agent honest & advised did not believe we were wrong , however stated, " paying the client is the way we roll".
    Won't change until we have an alternate / they have a competitor - John AIS Insurance

  • Rick | 23 Jul 2013, 01:43 PM Agree 0
    I am a little bewildered that in this day & age people don't accept the umpires rulings. I have a better idea - lets just use lawyers, that will cost us nothing...
  • Glenn Ross | 24 Jul 2013, 11:10 AM Agree 0
    Clients threatening FOS intervention can result in insurers settling claims because it simply makes financial sense to do so, thereby avoiding the FOS costs, rather than adhering to policy coverage/proper indemnity. While practical and financially sensible, this precedent is detrimental to the insurance industry. Natural justice has two rules; the rule against bias and the right to a fair hearing. The right to appeal legal decisions also forms a part of our legal system. These 3 rules/rights do not apply to the FOS. The FOS members are legally trained, but (as with many legally trained folk) they may have no practical or working knowledge of the things they are judging. The FOS system requires an overhaul - having regard for the 3 rules/rights mentioned above. A part of the overhaul may include appointing (a panel of ?) adjudicators from industry and commerce, rather than from legal backgrounds, to introduce a working knowledge and pragmatism to the FOS decisions - rather than just adopting one legally trained person's view. The FOS fee system also needs to recognise that there should be no charge for innocence or when a (falsely accused ?) broker/insurer has done the right thing.
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