Why has it taken 10 years to address the Equitable Life collapse?
It is difficult to appreciate how it has taken the UK government 10 years to come anywhere near answering compensation claims for the Equitable Life debacle back in 2000. Equitable Life was literally on the verge of collapse due to a number of retirement guarantees offered to customers which came back to bring the company to its knees. The company lost a high-profile court case which effectively forced the breakup Equitable Life and a nightmare scenario for many customers.
The new coalition government has recently indicated a potential compensation payment of around £500 million although this is only a fraction of that expected by campaigners on behalf of those who lost out. While the current UK government was obviously not involved in the Equitable Life debacle it has been left to carry the can and many experts are deeply disappointed about the potential compensation figure being mentioned. However, this does not answer the question as to why it has taken nearly 10 years for the issue to be addressed - although the final ruling will not come into play until late in 2010/early 2011.
Aside from problems relating to the Equitable Life collapse we must ensure we do not see a repeat of the situation in the future.
Royal Bank Of Scotland Feeling The Pain
News that Zurich Financial Services has dropped out of the bidding for the Royal Bank of Scotland's insurance division has brought the UK banking group back into the limelight with concerns that the insurance sale may have to be pulled, or raise less than the £7 billion mentioned at the onset. Even though the group recently raised £12 billion from a fund raising with shareholders, and sold anot...Read More
New drink-drive survey shows greater female responsibility
Women have far more strict views on drinking and driving than do men, according to Diamond.The car insurance provider has released the results of its latest survey, showing that just one in a hundred women would hit the road if they had consumed between three and four units of alcohol - enough to put them over the drink-drive limit.Among men, this figure was one in ten.Moreover, over six in ten ma...Read More
UK motor insurance premiums rise by 14%
The average motor insurance premium in the UK has increased by 14% over last year with young drivers apparently bearing the brunt of this new push by the car insurance industry to lock in profits for the future. This comes at a time when more and more people in the UK are struggling to cover their everyday living expenses and a 14% increase in motor insurance premiums is a disaster for many people...Read More
Government scheme could cut car insurance costs
The government is mulling plans which could see motorists benefit from cheaper car insurance through signing up for courses to improve their skills behind the wheel. Under the terms of the new plan, those who take advanced driving courses could cut the cost of insuring their car by around 25 per cent. However, young drivers will benefit from even marked reductions, with the Telegraph claiming that...Read More
What have the government got to hide about Equitable Life?
Despite the government wheeling out a statement suggesting that many of those customers who lost money in Equitable Life will receive compensation in the years to come, Ann Abraham of the Parliamentary ombudsman has hit out at the government's interpretation of her report. The report into the Equitable Life saga was deeply critical of the UK government and the regulatory regime created to look aft...Read More