IIB slams unlimited compensation awards proposal
The Institute of Insurance Brokers (IIB) has voiced strong opposition to unlimited compensation awards as part of its response to the Financial Services Authority (FSA) consultation paper - Financial Services Compensation Scheme (FSCS): review of limits.
Under the FSA proposals, individual compensation limits for deposits, investments and home finance will be set at £50,000. Insurance customers, however, will have 100% protection for compulsory classes (such as motor and employers' liability) and 90% protection for other classes of insurance with no upper limit.
Ann Peel, IIB head of Technical Services said the sustainability of any scheme which offers unlimited guarantees to customers has to be questioned: "We are urging the FSA to place a cap
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