Yesterday all eyes were on breakdown cover provider RAC after it was cited by the Financial Conduct Authority (FCA) as among those failing to comply with the watchdog’s one-year-old general insurance renewal rules.
Now a report by the BBC says not only are customers getting an apology from RAC, some will even be compensated for the insurer’s violations. According to the FCA, the firm’s breakdown policy renewal letters failed to highlight both the premium comparison and the ‘shop around’ note as key information.
“While our breakdown policy renewal documentation did accurately contain all the necessary information, we recognise that some of the key information in our letters was not as prominently displayed as it should have been,” the report quoted an RAC spokesperson as saying. “We continue to be committed to giving members clear and fair information so they can make the right decision, and are contacting those affected to ensure they are satisfied.”
It remains to be seen how many of RAC’s clients will be provided satisfaction in terms of refunds.
Last June the regulator said it found Admiral to have published inaccurate premium amounts in renewal documents – prompting the insurer to reach out to the misinformed policyholders, whose payments were refunded if they chose to switch providers.
