Spike in insurance grumbles

Complaints to the Insurance & Financial Services Ombudsman Scheme (IFSO) have continued to rise.

The ombudsman investigated 314 complaints in the 12 months to the end of June, compared to 270 in the previous year.

The spike follows a series of earthquakes and storms which have caused large numbers of insurance claims, but ombudsman Karen Stevens believed policyholders had become more aware of their rights.

‘‘Consumers know they have the right to complain,’’ Stevens said. ‘‘Our service is free and independent, and complaints can lead to positive change.’’

There are 54 insurance companies and 847 adviser businesses in the IFSO scheme, which hears disputes on amounts up to $200,000.

Complaints about house insurance (27 per cent), car insurance (13 per cent), travel insurance (13 per cent), and health insurance (10 per cent) sparked most investigations.

Handling of Canterbury earthquake claims continues to spark complaints.

‘‘Since 2010, we have resolved 198 Canterbury-earthquake complaints and responded to 2060 complaint enquiries,’’ Stevens said.

‘‘We continue to be involved with more complex Canterbury complaints, and we have signed a Memorandum of Understanding with EQC so we will be dealing with the Kaikoura earthquake complaints.’’

Stevens said people continued to buy insurance without understanding it.

‘‘Many complaints could have been avoided if, for example, people read and understood their insurance policies or their loan or credit contracts.’’