Thanks for your reply Denis. I spoke to th the FSA who said that as long as the Insurer had the right to increase premiums as part of the Policy Terms then British Insurance had no case to answer. The Financial Ombudsman was more helpful. A lady there I spoke to said that she would write a letter expressing concern for me, as whilst they would not normally get involved in such a discussion, the massive hike in premiums did not sound like I was being treated fairly. (Which is apparently the only real right we have as consumers).
Frankly I've been looking at others iProtect/ GetMY etc. . and as long as you can show your payments are up to date with British Insurance, you can join with no exclusion period. So I am jumping ship.
Companies like British Insurance give the industry a poor name. All effected should get onto the Financial Ombudsman as a first step (who were very helpful) and if enough people do, then perhaps people will sit up and look at such sharp practice.
On a final point, I joined May last year (£33 per month), in July they hiked the premiums to £64 month. When I complained they said that in May they didn't know prices would go up in June! This doesn't tie with you getting the lower premium in July! I think they are hooking people in, then ramping up premiums as a matter of course. Even today we can get quotes for premiums half of what we are paying!...
If Money Supermarket were serious about being independent it would steer people away from this outfit. Bizarrely British Insurance is claiming on its website "British Insurance has been a long time campaigner for consumer rights, particularly when it comes to payment protection insurance." and "British Insurance regularly commissions research into the industry, bringing to the fore many big names in the world of finance who are being, what we consider, immoral when selling payment protection insurance. Our aim is to both educate and warn consumers about the cover."
Get onto the Ombudsman by phone and I encourage others to as well. Insurance should offer peace of mind, not anxiousness!