Menu
25/06/2003
Serious Fraud Office investigates major insurance scam
The Serious Fraud Office (SFO) in conjunction with the PSNI have revealed that around 1,000 local businesses have been affected by a multi-million pund insurance scam.
The investigation centres on a number of insurance brokers based in England and one operating in Northern Ireland.
Following this morning’s announcement on the investigation, the Minister for Enterprise, Trade and Investment, Ian Pearson, said: “Around 1,000 local businesses have been affected and the investigations by PSNI, and the Serious Fraud Office, into the actions of the brokers involved are therefore most welcome.
“Businesses will certainly wish to recover premiums which may have been lost, and I understand that this can be done through the civil courts. Businesses which believe that their insurance cover may be affected should contact their broker.”
Commenting on the additional PSNI and SFO examination of the problem of “grossing up”, the Minister said: “The announcement of an enquiry by PSNI into the practice of grossing up is also welcome. At a time where many businesses are facing additional pressure through increased premiums, any actions such as grossing up, which inflates costs, is clearly damaging to business and must be deplored.
“In addition, the proposed introduction of tighter regulation by the Financial Services Authority (FSA) will put a stop to such unfair practices. From January 2005, each transaction will be accompanied by a complete breakdown of the payment due. This step forward is bound to be a great benefit and confidence builder to any business.”
It is understood that the categories of insurance affected include employer’s liability, public liability and property insurance.
The practice of “grossing up” is the inclusion of extra commission in the overall premium being charged to a client company, which leads to inflated premiums.
The relevant voluntary regulatory bodies such as the General Insurance Standards Council and the British Insurance Brokers Association outlaw this practice.
A spokesperson for the Department for Enterprise, Trade and Investment said: “Where a business has lost its insurance premium it may obtain redress through the civil courts against the broker with whom the premium was placed.”
(SP)
The investigation centres on a number of insurance brokers based in England and one operating in Northern Ireland.
Following this morning’s announcement on the investigation, the Minister for Enterprise, Trade and Investment, Ian Pearson, said: “Around 1,000 local businesses have been affected and the investigations by PSNI, and the Serious Fraud Office, into the actions of the brokers involved are therefore most welcome.
“Businesses will certainly wish to recover premiums which may have been lost, and I understand that this can be done through the civil courts. Businesses which believe that their insurance cover may be affected should contact their broker.”
Commenting on the additional PSNI and SFO examination of the problem of “grossing up”, the Minister said: “The announcement of an enquiry by PSNI into the practice of grossing up is also welcome. At a time where many businesses are facing additional pressure through increased premiums, any actions such as grossing up, which inflates costs, is clearly damaging to business and must be deplored.
“In addition, the proposed introduction of tighter regulation by the Financial Services Authority (FSA) will put a stop to such unfair practices. From January 2005, each transaction will be accompanied by a complete breakdown of the payment due. This step forward is bound to be a great benefit and confidence builder to any business.”
It is understood that the categories of insurance affected include employer’s liability, public liability and property insurance.
The practice of “grossing up” is the inclusion of extra commission in the overall premium being charged to a client company, which leads to inflated premiums.
The relevant voluntary regulatory bodies such as the General Insurance Standards Council and the British Insurance Brokers Association outlaw this practice.
A spokesperson for the Department for Enterprise, Trade and Investment said: “Where a business has lost its insurance premium it may obtain redress through the civil courts against the broker with whom the premium was placed.”
(SP)
Related Northern Ireland Business News Stories
Click here for the latest headlines.
03 April 2003
FSB demands genuine budget for business
In a budget submission sent to the Chancellor, the FSB has identified tax inequalities, rising business costs and liability insurance premiums as the three key issues facing small firms. Calling on the Chancellor to deliver a genuine budget for business this April.
FSB demands genuine budget for business
In a budget submission sent to the Chancellor, the FSB has identified tax inequalities, rising business costs and liability insurance premiums as the three key issues facing small firms. Calling on the Chancellor to deliver a genuine budget for business this April.
08 December 2003
FSB welcomes report on Employers’ Liability Compulsory Insurance
The Federation of Small Businesses, welcoming a number of the proposals announced in the Government’s review of Employers’ Liability Compulsory Insurance (ELCI), have warned that there is still some way top go on this issue.
FSB welcomes report on Employers’ Liability Compulsory Insurance
The Federation of Small Businesses, welcoming a number of the proposals announced in the Government’s review of Employers’ Liability Compulsory Insurance (ELCI), have warned that there is still some way top go on this issue.
10 February 2005
Minister welcomes guidance on business insurance
Enterprise Minister Barry Gardiner has welcomed a new guide that offers practical advice to businesses on purchasing insurance cover.
Minister welcomes guidance on business insurance
Enterprise Minister Barry Gardiner has welcomed a new guide that offers practical advice to businesses on purchasing insurance cover.
16 April 2014
Local Insurance Company Removes Common Van Insurance Obstacles
Local company, Find Insurance NI, is going that bit further to make life easier for their van insurance customers. Whether you use your van for business or pleasure, making sure your insurance policy is up to date is one of those necessary evils that you just can’t avoid. The team at Find Insurance NI understand that your time is precious.
Local Insurance Company Removes Common Van Insurance Obstacles
Local company, Find Insurance NI, is going that bit further to make life easier for their van insurance customers. Whether you use your van for business or pleasure, making sure your insurance policy is up to date is one of those necessary evils that you just can’t avoid. The team at Find Insurance NI understand that your time is precious.
10 April 2002
Insurance policy premiums give Easyjet cause for concern
Budget airline Easyjet has admitted it is encountering limited turbulence stemming from the 11 September attacks after warning that insurance policy premiums had “increased substantially”.
Insurance policy premiums give Easyjet cause for concern
Budget airline Easyjet has admitted it is encountering limited turbulence stemming from the 11 September attacks after warning that insurance policy premiums had “increased substantially”.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
