Government to probe mis-selling claims

[EXC]

''The government is to investigate claims that some of Britain's top employment agencies have been mis-selling insurance to thousands of workers.

The move follows claims in the Commons that top employment agencies have been needlessly selling personal accident insurance to low-paid workers.

The shadow business secretary Chuka Umunna accused the agencies of "profiteering" out of the practice.

But the industry said such firms are doing nothing wrong or illegal.

Mr Umunna named six agencies - Blue Arrow, Acorn, Taskmaster, Randstad, Meridian and Staffline - as being involved in the practice.

He said the insurance was often sold to workers on the Minimum Wage. He said that the personal accident policies were often not needed as workers were already covered by their employers.

http://www.bbc.co.uk/news/business-25860958

[Amethyst]

Re: Government to probe mis-selling claims

Gee7 published a statement in response.

SHREWSBURY, 23 Jan 2014 – a response to Chuka Umunna's comments about Gee 7 Group in the House of Commons today.

Gee 7 Benefits do not and have never provided – nor offered to do so – temporary personal accident insurance that is limited to accidents occurring in the workplace or the commute to and from work. Our stance has always been that such insurance provides limited cover and is, in most instances, unnecessary.

We offer a platform for employee benefits and staff perks to a range of companies. This consists of shopping discounts and offers, travel offers and an employee assistance programme including access to stress and debt counselling, and a legal helpline.

In one instance, we have included as part of that package, access to a hospital cash plan paying cash benefits for in-patient and out-patient visits to hospital as a result of sickness and accidents, as well as a cash payment for accidental death occurring at any time and place. This is a product for which there is a genuine need.

We were told of one recruitment company selling temporary accident insurance to temporary workers rumoured to be earning in excess of £1m per annum. We had no details of the product or the way it was sold. We considered a strategy of offering our Staff Benefit platform to recruitment companies as we recognised that there was the potential for issues with their insurance practises. By offering a range of discounts and perks designed to save employees hundreds of pounds per annum on their everyday spend, our platform provides immediate and quantifiable value to employees.

Gee 7 Group specialises in financial planning, wealth management and creating employee benefit packages.