Finance Matters

• 11Mar

  Must I pay for insurance firm’s slip-up?

  Insurance No Comments

  From This is Money:

  I have had a bill for £113.55 from my car insurance company because no monthly direct debit payments went to them for April, May and June last year. I was not told about this problem though I had to make a separate payment for July, August and September after they said my bank refused them the money even though the direct debit was in place. I recently cancelled the policy as I’m getting rid of the car. Am I obliged to pay this amount and if so do I have to pay it all at once? R.F., Stockton-on-Tees, Cleveland
  You were insured with Aviva who have accepted responsibility for the problems with your regular payments.I was told: ‘During the period between April and June 2009 there was an isolated system error which meant we did not take payments for Mr F’s motor insurance premium. ‘As this fault was an error on our part, under the specific circumstances we have decided to waive the money owed and we have apologised for any inconvenience caused. We have taken steps to ensure an inci…

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• 11Mar

  Mobile phone insurance: Is it worth it?

  Insurance No Comments

  From This is Money:

  When you buy a phone directly from a shop or network provider you may find that the salesperson does their best to sell you mobile insurance at the same time.

  But it can cost around the same to replace your handset as it does to pay for and make a claim on your insurance.
  Alternatively, you may also find that it is cheaper to insure your phone as part of your home contents policy or even as part of an added value bank account.

  We’ve investigated all the options and spoken to some This is Money readers about their choices to help you decide which insurance is best for you, and if you need it at all.

  Cost of insurance vs cost replacing your phone
  The first decision you need to make is whether or not you need insurance for your mobile at all.
  A small monthly premium may seem good value compared to the full price of replacing a handset, but once you’ve factored in the excess, and the fact that networks have been known to cut deals to keep customers if they lose a phone, it…

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• 11Mar

  Revealed: UK’s uninsured driver hotspots

  Insurance No Comments

  From This is Money:

  Hebden Bridge, in West Yorkshire, and Glasgow were placed second and third in the list. Once again males in their early twenties were the main offenders.

  A surprise addition was London’s posh W11 postcode, where offenders were also older than the norm.

  The cost of uninsured drivers

  ‘The cost of running and insuring a car can be expensive-especially for younger drivers- however it is quicker and easier than ever to find a good deal for your car insurance by shopping around.’

  The AA says that fortunately the advent of automatic number plate recognition equipments (ANPR) on police cars is meaning that numberplates are being constantly cross checked against data taken from the MID (Motor Insurance Database).

  Some, like Germany, have about 1 in 500. However, in the UK we are making inroads into the problem and at the forefront are the police who have power to stop and confiscate cars they suspect of being driven without cover.

  The MIB exists to compe…

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• 11Mar

  Get into shape to cut insurance premiums

  Insurance No Comments

  From This is Money:

  Supermarkets, meanwhile, cash in on our desire for a fresh start in the New Year by packing shelves with special deals on fruit and vegetables. And in January, sales of nicotine patches and inhalers boom as hundreds of thousands of smokers struggle to stub out their cigarettes for good.
  Of course, many of these New Year good intentions evaporate within a few weeks, but there can be hidden rewards for those who stick to their new healthy regime.
  As well as the obvious benefits, there is a financial bonus as lifestyle factors such as diet and exercise are increasingly used by insurers to calculate the cost of life and health cover.
  Prudential has led the way, setting up PruHealth five years ago. Customers participate in a Vitality programme and by exercising regularly, eating well and looking after their health they can benefit from medical insurance premiums that are up to 25% lower.
  Shaun Matisonn, chief executive of PruHealth, says: ‘After five years, we’re convinced this is…

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• 11Mar

  ‘EBay generation’ needs extra cover

  Insurance No Comments

  From This is Money:

  Spare bedrooms, garden sheds and even the kitchen table are becoming the new base for working Britain.
  More than 3.5m people work at home for some or all of the week, according to the TUC – about one in eight of the working population.
  The wave of redundancies triggered by recession has prompted thousands more to set up on their own. But recent research by insurer Direct Line found that almost a third of people running a business from home had no specialist insurance.
  Many basic policies offer cover for business equipment used in the home, typically between £3,000 and £5,000, but this is designed only to protect those who occasionally do screen-based work at home.
  Graeme Trudgill of the British Insurance Brokers’ Association says: ‘If you have customers visiting you at home regularly, or if you pay someone else to work with you, get in touch with an insurance broker and discuss a business policy.’
  Small traders who keep stock at home – for example, the growing ar…

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• 11Mar

  Comparison websites ditch watchdog plan

  Insurance No Comments

  From This is Money:

  One former boss of a comparison site warned that as a result of the collapse, many consumers could be misled by false claims and misleading information.
  Sites such as Moneysupermarket.com and Confused.com, which sell millions of insurance, mortgages, phone and internet deals, led a boycott of the new voluntary code.
  The Comparison Consortium was set up to provide a recognisable stamp of quality for the sales practices of price comparison websites.
  The voluntary code was viewed as a last-ditch attempt to stave off compulsory Government rules on sales practices.
  But so few firms signed up, the consortium has collapsed. Now firms can continue displaying information about their products with minimal controls on their activities.
  Sean Gardner, former managing director of the Moneyexpert website and head of the Comparison Consortium until its demise, says: ‘Trying to bring many of these people together felt like herding a group of angry cats.
  ‘It is hard to avoid the conclusion…

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• 11Mar

  Payment protection rules delayed

  Money No Comments

  From The BBC:

  The Financial Services Authority (FSA) is delaying its plans to combat the mis-selling of payment protection insurance (PPI).Criticism from the financial industry has forced the FSA to extend its consultation by another six weeks. The FSA’s own consumer panel said this pressure was to blame for delaying the fair treatment of consumers. PPI is supposed to help people repay their loans if they fall ill or lose their jobs. In September 2009, the FSA proposed a comprehensive overhaul of the rules not only on selling PPI, but also of the way that lenders and insurance brokers should deal with complaints about past mis-selling. The FSA was responding in part to a huge upsurge in complaints filtering through to the Financial Ombudsman Service. Consumer organisations have welcomed the suggested rule changes, but not the lenders and insurance brokers for whom PPI sales are very lucrative. “We are disappointed that the industry has responded so critically to our proposals but we remain 100% comm…

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• 11Mar

  Npower will cut gas bills by 7%

  Money No Comments

  From The BBC:

  Energy company Npower is to cut domestic gas bills by 7% from 26 March, following price cuts by other suppliers.The company has become the fourth of the “big six” energy suppliers to announce a reduction in prices. Customers will see an average fall of £50 on their annual bill as a result of the change, the company said. Wholesale gas prices have fallen over the last year, prompting the latest flurry of cuts in domestic bills. “We always aim to offer competitive prices to our customers and we have lowered our gas prices although our profits halved in 2009,” said Kevin Miles, chief executive of Npower Retail. ChangesThe company is also making changes to its discount structure for those customers who pay by direct debit.
  For dual-fuel customers, the discount remains at £100 after 12 months using the payment system. But for gas-only customers, the discount rises from £20 to £50, and for electricity-only customers the discount doubles to £40. The announcement…

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• 11Mar

  ‘Sharp cut’ in pensions deficit

  Money No Comments

  From The BBC:

  A sharp cut has been reported in the deficit of final salary pension schemes in the private sector, figures show.The deficit was reduced from £51.9bn at the end of January to £15.1bn at the end of February, the Pension Protection Fund said. The value of pension funds can be volatile especially on a month-by-month basis. But the 7,400 schemes covered by the scheme were in a stronger position than a year ago. At the end of February 2009, the deficit stood at £204.7bn. Stock marketThe healthier position for pension funds has been led by the improving picture with shares and gilt yields.
  “During the month of February there was a 2.5% increase in assets due to rising UK and global equities,” the PPF said. At the same time, improved yields on government bonds meant that the cost of paying for pensions fell by 2%. A change in actuarial assumptions in October 2009 also reduced the estimated liabilities of schemes by around £70bn during the past year. “Funding positions…

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• 11Mar

  ‘Low morale’ hits tax authority

  Money No Comments

  From The BBC:

  Low morale and poor leadership is affecting performance at HM Revenue and Customs, a report by MPs has said.A staff survey carried out in February 2009 brought “dire results” for the tax authority, the Treasury Committee said. It found that only 11% of staff felt that change was well-managed in the department. The poll also found that only 57% of calls made by the public to the Revenue’s contact centres were answered in 2008-9. During the peak period for calls, during July, the response rate was lowest, at just 33%. Review”We are particularly alarmed by the low of staff morale and engagement at HMRC, and its effect on performance,” said Michael Fallon, the Treasury committee chairman.
  “We are deeply troubled by the apparent absence of any plan to ameliorate the situation, and call on HMRC management to re-double their efforts here.” But a spokeswoman for the tax authority said its senior managers were addressing the causes of low morale. “The department’s new business plan includes a…

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