The Treasury has published a consultation paper asking who should deal with consumer complaints about general insurance products until new protection for consumers begins in January 2005.
When industry regulation comes into effect, such complaints will be dealt with by the FSA. Under current arrangements, complaints about general insurance products bought from companies signed up to the GISC are dealt with by independent arrangements.
The consultation paper "Mortgages and General Insurance Regulation: Transitioning Complaints" asks whether the Financial Services Ombudsman (FOS) should be given powers to deal with complaints about products bought from GISC members before FSA regulation starts, but which arise after regulation comes into force.
Financial Secretary Ruth Kelly said: "Making transitional provision for these complaints would benefit consumers. However this has to be weighed up against the possibility of additional costs for firms, and any differences in approach and scope between the FOS and the current self-regulatory schemes."
Responses to the consultation paper, to be received by 30 November, can be emailed to mark.baldwin@hmtreasury.x.gsi.gov.uk
