Equitable Life competition scheme condemned
The Parliamentary Ombudsman has today issued a damning indictment of the U.K.'s proposed £400 million payout to Equitable Life suffers, many of whom lost their life savings during the company's near collapse back in 2000. The £400 million compensation scheme, yet to be rubberstamped by the government, equates to just £266 per policyholder despite the fact that a recent report suggested losses for policyholders were between £4 billion and £4.8 billion. So is their new hope for Equitable Life suffers?
There is no doubt that the damning report from the Parliamentary Ombudsman will make the UK government sit up and listen but whether additional funding will be injected into the compensation package remains to be seen. This has taken 10 years to bring to fruition and even now there is great controversy regarding the level of compensation and the admission of guilt on behalf of the UK government. While there is no doubt that the near collapse of Equitable Life, and the massive losses which some customers experienced, were the result of guarantees set up by the company itself the regulatory system in the UK was also called into question.
Whether or not the government is able to introduce more money into the compensation scheme is a matter for discussion in the short to medium term but ultimately there is no way they will increase the compensation pot from £400 million to anywhere near the £4 billion estimated losses.
Home insurance flood effort 'going well'
The government minister in charge of flood relief has received a progress report on the recovery effort from last summer's extreme weather.After speaking to the Association of British Insurers (ABI), John Healey said that home insurance firms' efforts were well on track.Three quarters of those forced into alternative accommodation thanks to flood damage to properties are expected to be back home b...Read More
Can we prevent ID theft?
Over the last few years there has been a massive increase in the number of ID thefts occurring around the world with many people being left with significant debt by the fraudsters. Despite the fact that more and more people are now aware of ID theft it seems that many of us still believe it will never happen to us. Can we prevent ID theft? ID theft is basically the theft of your private details...Read More
ABI Talks Tough Over Flood Insurance
As more and more UK home owners become acutely aware of the constant risk of flooding, it seem as though last years £3 billion clean up bill was too much for the insurance companies to stomach. The Association of British Insurers (ABI) has come out fighting for its members with claims that more than half a million homes in the UK are at risk of flooding. The ABI is refusing to advise members to...Read More
Overseas Car Insurance Is Hard To Follow
A report by Which? magazine has spotted the emergence of an alarming situation with regards to the hiring of cars when you are on business or holidays overseas. It seems as though the vast majority of those involved do not have a clue what cover the insurance offers, with many unaware of a range of excess payments which are activated in the event of an accident. Many people do not even questio...Read More
Travel insurance tips for Terminal 5 passengers
A price comparison site has issued tips for travellers who have been caught up in the luggage chaos at Heathrow's Terminal 5. Since Terminal 5 opened last week, thousands of items of luggage have been mislaid or delayed. Responding to developments, James Harrison, chief executive of Insurancewide.com, said that the first step to be taken by anyone affected is to confirm the extent of the delay and...Read More