# Direct Line & Churchill Fined £2.17m by the FSA



## Shiny (Apr 23, 2007)

http://www.insuranceage.co.uk/insur...rbsi-firms-fined-gbp217m-complaints-tampering

:doublesho

As the alterations they made were not detrimental to their customers, I guess they are being taught a harsh lesson that they mustn't try and hide things from the FSA, to the point of being made an example of.


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## S63 (Jan 5, 2007)

Also good to hear Jack Straw campaigning about the amount of fraud going on within the insurance industry regarding personal injury claims and specifically whiplash, costing us billions.


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## james_death (Aug 9, 2010)

Wish there could be tougher action on all the false claimants but i imagine it would be victimisation as they are all genuine im sure..... Yeah right....

As for the Fine... call me a cynic but imagine the respective company customers premiums will be going up again.... I cant imagine them loosing money.


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## R7KY D (Feb 16, 2010)

Who's paying the fine though ?


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## The Cueball (Feb 8, 2007)

R7KY D said:


> Who's paying the fine though ?


Yip, glad my insurance isn't with them....

:thumb:


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## Shiny (Apr 23, 2007)

Exactly, it will affect their profits, so no doubt they will adjust rates to compensate. Ultimately the customer will pay over a period of time.

If we got hit with a £2m fine, the office doors would be shut and you'd never see me again!


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## toomanycitroens (Jan 14, 2011)

The Cueball said:


> Yip, glad my insurance isn't with them....
> 
> :thumb:


Mine's with Churchill, I bet it won't be on renewal - The customer always pays!


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## ITHAQVA (Feb 20, 2011)

I'll stay with BMW insurance.....until they get fined too


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## Hasan1 (Jul 1, 2011)

Shiny said:


> Exactly, it will affect their profits, so no doubt they will adjust rates to compensate. Ultimately the customer will pay over a period of time.
> 
> If we got hit with a £2m fine, the office doors would be shut and you'd never see me again!


The tax payer will pay it as its me and you that own it. It's part of R.B.S


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## ITHAQVA (Feb 20, 2011)

Isn’t it ironic how many private businesses are unofficially nationalised


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## Ross (Apr 25, 2007)

I have had one hell of a time with Churchill and no wonder.


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## empsburna (Apr 5, 2006)

ITHAQVA said:


> I'll stay with BMW insurance.....until they get fined too


Probably underwritten by Allianz knowing the German connection.


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## justina3 (Jan 11, 2008)

What I don’t get is the insurance companies know there being bent over by false personal injury claims why don’t they do or even attempt to do something about it? 

Why not produce figures of how much this is costing each household give them to the government and demand they make it a life sentence if your caught with a so called bad back off work down the park playing football, there is no deterrent and no serious punishment for this crime.

If you had someone printing funny money and costing the uk billions upon billions the serious crime squad would be all over it yet this crime has somehow become the norm I have even heard of people using to fund holidays ffs !


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## empsburna (Apr 5, 2006)

justina3 said:


> What I don't get is the insurance companies know there being bent over by false personal injury claims why don't they do or even attempt to do something about it?


They still make money. Money from selling the information (refferal fee's etc), adding on extra bits to premiums etc.

Gotta be worth at least a couple of billion a year to the insurance company.


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## justina3 (Jan 11, 2008)

good point but surely anyone with an ounce of common sense can see that is a floored plan as the premiums rise then so do the amount of un-insured drivers on the roads


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## empsburna (Apr 5, 2006)

justina3 said:


> good point but surely anyone with an ounce of common sense can see that is a floored plan as the premiums rise then so do the amount of un-insured drivers on the roads


You are right, but there are lot's of factors to consider. Injury claims, associated legal costs, fraud, uninsured drivers.

I think until the fee's are capped (or banned) then we won't see a reduction in premiums - it has been years and years since they have made any money (15+ years at least now).

I think most of the motor risk insurance is just a loss leader to win business for other areas.


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## justina3 (Jan 11, 2008)

well i didnt know that


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## AndyC (Oct 25, 2005)

empsburna said:


> You are right, but there are lot's of factors to consider. Injury claims, associated legal costs, fraud, uninsured drivers.
> 
> I think until the fee's are capped (or banned) then we won't see a reduction in premiums - it has been years and years since they have made any money (15+ years at least now).
> 
> I think most of the motor risk insurance is just a loss leader to win business for other areas.


Nail on head. There's a lot of discussion on this side of the fence about how the issue of fraudulent RTA injury claims can be addressed. Not seen any input from the medical profession yet which I think will have to be taken on board.

As regards the fine - excellent news, both because of the nature of the naughtiness and to bring about more awareness of the FSA's role within our industry - it will, I suspect, never remove lack of confidence but I really hope that people will begin to realise that the days of insurers behaving in ways which contravene the regulations under which the industry now has to operate is well & truly over.


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