(Reuters) – Britain’s competition regulator said on Wednesday that Direct Line breached an order by erroneously adding a ‘No Claims Bonus Protection’ add-on to customers’ policies without their permission.
The British insurer, currently a takeover target of bigger rival Aviva, failed to provide at least 320 customers with the No Claims Bonus Protection information between June 2023 and January 18, 2024, the Competition and Markets Authority (CMA) said in a published letter.
“This was caused by Direct Line’s systems adding No Claims Bonus Protection by error to customers’ policies, without their permission and only notifying them after the No Claims Bonus Protection had been applied to their policies,” the CMA said.
The regulator had implemented measures to simplify customers’ understanding and choices regarding the No Claims Bonus Protection add-on following a 2014 market investigation into private motor insurance.
The CMA will not take formal action against Direct Line after the company took appropriate steps, including refunding customers who had not wanted the protection.
(Reporting by Yamini Kalia and Yadarisa Shabong in Bengaluru; Editing by Tasim Zahid)
