CREWE and Nantwich MP Kieran Mullan has successfully secured protections for motorists with a change in how insurance companies are advised to deal with third-party insurance claimants.

Motorists generally benefit from being able to take complaints about their own insurer to an independent Ombudsman. But the same right does not exist when a claim is dealt with by another insurer, known as third party claims.

Insurance companies were under no obligation to tell people this and information on their websites and sent to people making these claims has been known to incorrectly tell them otherwise.

Motorists will now be better protected as the national insurance industry body has agreed to change their guidance to ask insurance companies to proactively tell third party complainants they can't go to the Ombudsman if things go wrong.

The MP first learned of this issue when contacted by a local resident, who after being involved in a car crash which was the fault of another driver, he decided that it would be easier to settle the matter directly with their insurer.

He was unhappy with the repairs and service, but when he took the complaint to the Financial Ombudsman Service, he was told that they could not take up his complaint as he was not the insurance companies' customer. This was despite letters from the insurer telling him he could.

Since then the MP has been fighting for a change in the guidance, so that motorists are fully aware of the loss of protection they suffer when choosing to pursue a third-party settlement.

He appeared on Radio 4's Money Box to highlight the issue.

"This is great news which will provide protection for motorists. For far too long they have been left vulnerable and unaware of their rights," said the MP.

"I know that the many people who have been affected by this will be very pleased with this news. Longer term I want to secure a change in the law so third-party claims do sit under the Ombudsman's powers."

An ABI spokesperson said: "We appreciate this matter being brought to our attention and we were happy to update our Third-Party Assistance Guide for members."