In a firestorm of criticism, the Irish Life Insurance Co. (ILDIC) has apologised after its online insurance product called ‘life alert’ was condemned as “dangerous”. 

The product, which has been used for years by insurers, was sold by the firm to the firm for £30 a month. 

It was only revealed last week that the product was in breach of the terms and conditions of the insurance policy it was sold to, and was being withdrawn. 

According to a report by the Irish Times, the Irish Life insurer had previously sold the product to insurance companies for £300 a month, before being forced to stop selling it in June. 

The Irish Life product was advertised as being “for life”. 

It said it was “for protection against catastrophic events such as a heart attack, stroke, accident, or cancer”. 

In a statement issued to The Irish Mail, a spokesperson for the company said: The ‘life alerts’ offered by the company are meant to be a temporary measure to prevent a catastrophic event such as an accident or heart attack before the insurer is required to buy life insurance for the policyholder. 

As part of this temporary measure, the ‘life’ is provided in a way that the policy holder does not know what the cost of the ‘lifes’ is going to be. 

However, the spokesperson said that while the ‘Life’ is a temporary method of providing protection, the insurance company will continue to offer the product for life. 

A spokesperson for ILDIC said that the company had contacted the insurance regulator and would be “taking legal action against any individuals that breach the terms of their policies”. 

They added that they had been made aware of the issue and that the issue had been reported to the Insurance Ombudsman Service. 

They also confirmed that they were taking legal action. 

“This is a matter that we are taking very seriously,” the spokesperson told The Irish Post. 

Ildic added that “the ‘life” in the product has been “fully removed” from the company’s website and it had been withdrawn.

 The spokesperson did not say how much the product cost to sell, nor did they explain what happened to the “life” itself.

“As a result of this breach, we have withdrawn the product from sale and have apologised to all our customers and the insurance industry for any inconvenience this has caused,” they said.

According to The New York Times, “the company says it will offer a refund to anyone who bought the product online”. 

A spokeswoman for the Insurance Bureau of Ireland (IBI), which regulates insurance in Ireland, told the Irish Mail that the organisation “has received a complaint about a life insurance claim made by an individual, and is taking legal advice”. 

She added that the insurance watchdog would “take appropriate action” against any “individual who breaches the rules in relation to the sale of life insurance”.

 “Any breach of these rules will result in a fine of up to €3,000 and/or a six-month jail sentence,” she added. 

Irish Independent