FSA has published an undertaking from UK Insurance relating to its use of the term “consequential loss” in a travel policy. An exclusion clause referred to “consequential loss of any kind”. FSA thought consumers would not understand the term, and also that it was so unclear and ambiguous it might constitute a “significant imbalance in the parties’ rights and obligations to the detriment of the consumer” (in the words of the UTCCR). Both OFT and FSA have previously noted their concern over use of the term "consequential loss". UK Insurance has agreed to amend its policy to describe what is and is not covered. The changes will apply to all RBS Group policies and other branded policies for which RBS is responsible for policy wording.
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FSA gets UTCCR undertaking on consequential loss
- Jody Whitehorn or Ralph Lovesy.
- United Kingdom
- September 19 2008
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