Another instalment in Backchat's occasional column on insurers shooting themselves in the foot.

One of our spies tells us about a recent shopping trip to Argos to buy a £20 lamp.

As he was about to pay for his small purchase, our bright young shopper was offered an extended warranty policy for his new lamp.

The price? £5. As our man said, at 25% of the purchase price, does the firm expect its product to last only four years? FSA take note.