Negligence Claims Rise
A survey carried out by Alexander Forbes International, notes that claims and notifications against professionals rose sharply, climbing to 603 in 2005-06, from 452 a year earlier.
The largest factor in that rise can be accounted for by claims for incorrect endowment advice, which rose to 20% from 12%.
Executive director Mark Bracher said:
"An increasing number of home owners are finding that their endowment policies will fail to pay off their mortgages and they are seeking recompense from their accountants for negligent advice.
This has been compounded by a number of specialised claims farmers who have made a business of encouraging home owners to seek compensation from their advisers."
This problem would be solved at the stroke of a pen, if the life assurance companies agreed to underwrite these useless underperforming products.