Insurance & Savings Ombudsman says keep asking questions
Money Week: Insurance & Savings Ombudsman says keep
asking questions and read carefully
15 October 2014
Money Week is a timely reminder to read your
documents and keep asking questions, says Insurance &
Savings Ombudsman Karen Stevens.
“A lot of the complaints we investigate could
have been avoided if people had read and understood their
documents, and if they’d had access to the right
information,” says Karen.
Last
year the ISO Scheme dealt with the highest number of
complaints since 1998, with 3,215 complaint enquiries and
300 complaint investigations about insurance and financial
services.
“We’re pleased more people are using a
dispute resolution service to resolve their complaints,”
says Karen. “The ISO Scheme is an independent and approved
dispute resolution service, which is entirely free for
consumers.”
All financial service providers in New
Zealand must belong to a dispute resolution scheme. The ISO
Scheme has over 4,000 members, which include providers of
insurance, investments, loans and credit, superannuation,
financial advice and foreign exchange.
Karen says the
greatest number of complaints to the ISO Scheme still relate
to insurance, with 62% of complaints relating to house,
travel, contents and motor vehicle insurance; and 31%
relating to health, life and disability
insurance.
Although complaints about financial advisers
only made up 2% of complaints last year, these complaints
could be avoided with clear client communication and good
processes, says Karen.
“Financial advisers include
mortgage and insurance brokers, financial planners, and
people working for insurance companies who give advice,”
says Karen. “Complaints tend to be about the quality of
advice, miscommunication, misunderstandings, fees and
charges.”
“Again, we’d urge all clients of financial advisers to keep asking questions until you fully understand, and that includes asking your adviser about their fees and charges.”
5 tips for
insurance and financial services customers:
1.
Ask for an explanation of how financial products work, and
read recommendations in full before making decisions on
which one is right for you.
2. Keep asking
questions until you fully understand what it is you are
buying, including how much you are paying in fees and
charges.
3. Always provide full, accurate
information when applying for insurance.
4. Keep
all documentation, including policy documents and
letters.
5. Read all of your documents and ask
questions so you understand what obligations you
have.