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(From Post Magazine)
The British Insurance Brokers' Association is optimistic of securing compensation from insurers, after expressing worries over updating of the Motor Insurance Database.
Biba held talks with insurers last week but claimed only a minority of underwriters said they would not refund premiums, where brokers put a client on risk who then signed-up with another motor insurer.
The trade body will write to all 67 motor insurers before Christmas, outlining its position and determination that brokers should not be charged when a client is inadvertently placed on temporary cover, despite being insured elsewhere.
Concerns centre around policies paid through premium finance, when customers fail to alert their provider they are switching cover.
Brokers are then forced to gamble and put clients on cover, to ensure the database is updated on time, as the finance houses are unable to inform the broker of a ...