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The FCA has today fined Moorhouse Group Limited £159,300 for failures in relation to the oversight and control of its telephone sales and in particular the sale of commercial vehicle add-on insurance products during 2012.
Moorhouse fined for failures in relation to its telephone sales
The Financial Conduct Authority (FCA) has today fined Moorhouse Group Limited (Moorhouse) £159,300 for failures in relation to the oversight and control of its telephone sales and in particular the sale of commercial vehicle add-on insurance products during 2012.
Moorhouse is a general insurance broker whose business is focused on selling motor and liability related insurance products to small and medium enterprises (SMEs) including very small businesses known as micro-SMEs.
Georgina Philippou, acting director of enforcement and market oversight at the FCA said:
“Moorhouse had a responsibility to treat its customers fairly and this is true whether they are individuals or small businesses.
“Moorhouse failed to put in place systems and controls to ensure customers were given the right information. This put customers at risk of buying the wrong products and not having the right insurance cover.”
Moorhouse failed to disclose appropriate information about the limitations and exclusions of commercial vehicle add-on products to consumers before they were sold. Without balanced information there was a risk that consumers were not able to make an informed decision as to whether the product was suitable for them.
For example, under the excess waiver add-on policy, cover was provided only when the damage exceeded the excess agreed under the core policy. The breakdown add-on policy did not cover breakdowns which would be prevented by routine servicing of the vehicle, or replacing its tyres or windows. These limitations were not disclosed.
http://www.fca.org.uk/news/moorhouse...elephone-sales
Moorhouse fined for failures in relation to its telephone sales
The Financial Conduct Authority (FCA) has today fined Moorhouse Group Limited (Moorhouse) £159,300 for failures in relation to the oversight and control of its telephone sales and in particular the sale of commercial vehicle add-on insurance products during 2012.
Moorhouse is a general insurance broker whose business is focused on selling motor and liability related insurance products to small and medium enterprises (SMEs) including very small businesses known as micro-SMEs.
Georgina Philippou, acting director of enforcement and market oversight at the FCA said:
“Moorhouse had a responsibility to treat its customers fairly and this is true whether they are individuals or small businesses.
“Moorhouse failed to put in place systems and controls to ensure customers were given the right information. This put customers at risk of buying the wrong products and not having the right insurance cover.”
Moorhouse failed to disclose appropriate information about the limitations and exclusions of commercial vehicle add-on products to consumers before they were sold. Without balanced information there was a risk that consumers were not able to make an informed decision as to whether the product was suitable for them.
For example, under the excess waiver add-on policy, cover was provided only when the damage exceeded the excess agreed under the core policy. The breakdown add-on policy did not cover breakdowns which would be prevented by routine servicing of the vehicle, or replacing its tyres or windows. These limitations were not disclosed.
http://www.fca.org.uk/news/moorhouse...elephone-sales
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