Legal cover: the next big financial scandal

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Car crash
Car crash

The FSA has warned it is going to get tough on over-priced insurance add-ons, putting legal cover in the firing line.

In its business plan for 2012/13, the Financial Services Authority wrote:

"We have identified risks with general insurance products that offer poor value for customers who have little prospect of claiming and deficiencies in sales practices of these products. They are generally sold as an add-on to other products and often represent poor value in that they replicate other existing rights or free services."