Insurer 'preys on terminally ill'

ONE of the world's top insurance companies has been vilified in a Commons debate over unscrupulous working practices and corrupting its staff. Combined Insurance Company of America, part of the US giant Aon, operated 'scandalous practices', said Paul Flynn, Labour MP for Newport West.

Combined Insurance, based in Kingston-upon-Thames, Surrey, provides accident and sickness policies. Flynn singled it out after he was shown documents by a former employee of the company. The MP claimed that 'appalling corruption' took place at Combined Insurance.

He said: 'It pays no wages and staff are so desperate to earn money they are forced to sell hopelessly unsuitable policies, sometimes to people with illnesses, some of which are terminal, that would debar them from claiming benefits from other policies.'

During a debate on the integrity of the financial services industry on 11 June, Flynn said he wanted to 'detail many of the scandals because millions of people have been cheated and bamboozled by commission-hungry salesmen who have mis-sold poor-value pensions, mortgages and insurances'.

Financial Mail revealed in March that Combined Insurance was also facing a huge tax bill after a tribunal ruled that a salesman working for it should be treated as an employee rather than self-employed. Following the ruling, one former member of staff has received several thousands of pounds back from the Inland Revenue in expenses and tax paid, and several other members of staff are pursuing cases.

Gordon Coleman, head of compliance and sales at Combined Insurance, said: 'We are very disappointed that Mr Flynn saw fit to make these comments in Parliament without coming to us first to check the facts. All of our sales representatives are trained and tested before qualifying and their performance is evaluated and monitored.'

Coleman added that the company followed codes of practice set by the General Insurance Standards Council and the Association of British Insurers.