Students advised to complain

STUDENTS and other young people on low incomes who have recently been sold long-term endowment insurance policies and now doubt whether they can afford them should complain to the insurance company involved, writes Maria Scott.

This advice came from Lautro, the insurance industry regulator, this week as it warned companies against selling these policies to young people who could ill-afford them.

Companies are obliged to investigate complaints about this sort of mis-selling and if investors do not receive satisfaction they may be able to have their complaints investigated by the Insurance Ombudsman or Lautro.

Lautro says it is concerned about cases involving the sale of endowment contracts lasting 25 to 30 years, with premiums in the region of pounds 30 a month, to men and women aged 19 to 20.

Mike Abrahams, chief enforcement office at Lautro, said the young people concerned were just making ends meet, probably living with their parents and paying a low rent.