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Law360, London (January 22, 2021, 1:56 PM GMT) -- A consumer watchdog warned on Friday that insurance policyholders have had difficulties paying their premiums and that only a fraction have received refunds on motor cover after COVID-19 lockdowns kept vehicles off the road.
The study, conducted by Which? in November, surveyed more than 2,300 people with car, home or private medical insurance about the impact that the coronavirus outbreak had on their cover. It found that 14% of car and home insurance customers, and 29% of private medical insurance clients, struggled with their premiums during the crisis.
"While most struggling customers said they had received some kind of financial support from their car insurer, up to a quarter (25%) received no support whatsoever," Which? said. The watchdog added that in some cases this may have been because consumers did not get the message that help was available.
The study also found that almost half of motor insurance customers it questioned had seen a major fall in their annual mileage, but that only 20% saw some of their premium repaid.
Lockdowns introduced by the government to help contain the virus have resulted in people making fewer journeys.
Regulators have backed the need for greater protection for consumers and help during the pandemic. They have urged the insurance industry to help consumers by showing some flexibility with policies. People who cannot work from home because of the virus, and who now have to drive to work, do not need to extend their cover, the Association of British insurers said in August 2020.
"Insurers are committed to helping customers throughout these challenging times...[and] the insurance industry plays a vital role as a final safety net for customers," Mark Shepherd, ABI assistant director, said at the time.
The ABI was contacted for a comment on the Which? study on Friday.
--Additional reporting by Lucia Osborne-Crowley. Editing by Joe Millis.
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