BIBA Welcomes FCA Report on Motor Legal Expenses Insurance (MLEI)

LONDON, June 7 -- The British Insurance Brokers' Association issued the following news release:

The Financial Conduct Authority (FCA) has today announced the results of their review into Motor Legal Expenses Insurance. Steve White, BIBA's Chief Executive, said: "We have been working closely with the FCA and our members on this review and think that it is important that the customer has choice and is not forced to buy MLEI by rolling it into the main motor policy - adding it to the cost. "Following the recent LASPO Act, which changed the way 'no win no fee' type claims are funded, Motor Legal Expenses Insurance (MLEI) is more important than ever to motorists who do not want to be left out of pocket should they be involved in an accident that is not their fault. The FCA has also said that they believe MLEI 'can be useful for consumers in the current market'. "Motor claims can be complicated, expensive and stressful so MLEI is something that all policyholders should consider when arranging their insurance. The move to customers buying online has seen them receiving less information about how MLEI works. We welcome the FCA's response and hope it will bring greater clarity to customers in the sales process. We recommend that customers always speak to an insurance broker who can correctly explain how MLEI works and arrange a suitable policy." Graeme Trudgill, BIBA's Executive Director, said: "BIBA is completely aligned with the FCA's views on how MLEI should be sold. MLEI offers important support at a time when you most need it, when you are a victim of an accident. "MLEI can help the policyholder to pursue their legal right to recover their uninsured losses in a non-fault situation. It is very important that customers have a clear understanding of what MLEI is and when it does and does not operate. BIBA will produce guidance for its members on MLEI and the sales process." The BIBA MLEI guidance will be available to members this summer. BIBA's not-for-profit Find a Broker service is available by calling 0870 950 1790 or at http://www.biba.org.uk/CustomerHome.aspx.

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