British Insurance slams 'sluggish' government on PPI

The Personal Protection Insurance (PPI) sector is “full of hot air”, according to British Insurance.

Simon Burgess, from the independent personal protection insurance provider British Insurance, said the government and stakeholders in the payment protection sector were “ineffectual” and “sluggish” when it came to helping cash-strapped consumers meet their mortgage and loan repayments.

He said: “In January, the Ministry of Justice published a consultation paper introducing a package of measures to assist the over-indebted. It proposed to grant consumers a 12-month amnesty on debt repayments, but responses are still being considered and the next steps will not be decide until later this year.

“There is no sense of urgency about helping the millions without the financial safety net of payment protection insurance and give the government usually takes years before implementing anything, I fear struggling consumers will be left to fend for themselves.”

Since the credit crunch hit the UK, a number of mortgage providers have increased the rate of interest on their deals fuelling speculation of arrears and high home repossession figures to come.

However, Simon Willcox, manager of Wimbourne-based IFA Ward Goodman Financial Services, said it was important to read the small print if considering taking out personal protection insurance. He said: “Personal protection insurance has a lot of exemptions and you will find that with it you have to pay close attention to what you are not covered for.”

But he said that some payment protection insurance could have advantages. He said: “If you are a self-employed carpenter with a mortgage and no savings and you don’t get a penny if you are off sick then you would be silly not to have any kind of cover.”