Automatic insurance policy renewal "works well"
Personal insurance
22nd May 2009
The ability of a consumer to automatically renew their UK insurance policy should not be taken away, according to the Association of British Insurers.
Maggie Craig, director of consumer affairs at the industry representative, said her organisation is looking to ensure that the proposed European consumer rights directive does not impact on this long-established practice.
She claimed automatic renewal is "a process which works well for consumers" but warned it could be under threat from the new directive, which may also prevent the automatic enrolment of employees on company pension schemes.
Ms Craig gave evidence to the House of Lords European Committee regarding the planned regulations yesterday.
Four separate EU consumer directives will be brought together to create the new set of rules, which will also be modernised to further protect people's rights.
The regulations are based on the minimum harmonisation concept and countries can introduce their own stricter rules on top.
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