View more on these topics

Undercover tactics could mean jail for insurers

Staff at insurers and lenders may face up to two years in jail if they use unscrupulous practices to gain information on clients.

The Government is proposing to amend section 60 of the Data Protection Act to increase penalties for deliberate and wilful misuse of personal data following a lengthy consultation.

The Information Commissioner’s Office claimed last August it had evidence that insurers use private detectives and other unscrupulous means to source information on clients they believe could be making fraudulent claims.

Some lenders have been accused of using similar practices to trace debtors.

ABI spokesman Jon French says: “The number of cases where insurers could fall foul of this ruling is pretty low but we expect insurers that sub-contract work, sometimes with private investigators, to uphold high standards.”

Constitutional Affairs Secretary Lord Falconer says: “We are determined to stamp out this intrusive and illegal trade.”

Recommended

My beautiful wrap – Take control of your destiny

In essence, a wrap is simply an online environment in which an adviser can manage all of a client’s assets in one place to best effect. That may not sound very radical but it stands to fundamentally alter the complex relationship that has historically existed between financial advisers and the big insurance companies. Indeed, wraps […]

Close sets up team to handle IHT-mitigation business

Close Investments has set up a dedicated team to handle adviser demand for Isle of Man Assurance’s property wealth manager plan.The plan’s value as an inheritance tax mitigation scheme for primary residences was confirmed by HM Revenue & Customs on February 22, 2005.It works by entering into a home reversion transaction, selling the property to […]

India GDP surprise

By Kunal Desai, head of Indian Equities, Neptune Kunal Desai, manager of the Neptune India Fund, comments on the strength of India’s latest GDP figures. Click here for more Important Information Investment risks The Neptune India Fund may have a high volatility rating and past performance is not a guide to future performance. The value […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment