(31 Aug 04)

Customers may not be aware of this, but the Financial Services Authority is about to bring in new rules governing the selling of insurance products by the retail motor trade.

Many dealerships, of course, make a considerable part of their income by selling various types of insurance policies, including warranty and breakdown cover, similar insurance for MOT tests and tyres, early termination cover, personal accident and so on.

What the FSA will insist upon, as from January 14 next year, is that all dealer staff involved in this area of the business are competent to do the job, and are fully aware of their responsibilities to the customer.

The Chartered Insurance Institute, an organisation with more than 70,000 members, isn't sure if they will be; so it has developed what it's calling "Creditor Protection", an online tutorial programme and test, designed specifically for the motor trade.

More on www.cii.co.uk.

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