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.
Insurance warning from esure
In-store insurance policies should be avoided if consumers want to save money, esure has warned.The insurance company has conduced research which found that nearly a quarter (23 per cent) of Britons buy extra insurance for products bought from a retailer.However, of this group, 3.3 million already have home contents insurance, meaning the extra cover is useless.The company warned that buying unnee...Read More
Barclays Bank at loggerheads with the UK Treasury
It has been revealed today that Barclays Bank is in a similar situation to that experienced by Lloyds Bank which had great difficulty agreeing a toxic asset insurance plan with the UK Treasury. Up until now Barclays Bank has very much depended upon its own financial resources to get by but like so many financial institutions in the UK is being forced to take up the option of insuring a portion of...Read More
Legal action launched over air passenger duty
Tour operators have launched "substantial" legal action over the government's air passenger duty (APD), claiming that the levy breaches international aviation agreements.APD, which ranges between £10 for European economy flights to £80 for business class long-haul flights, was doubled earlier this month following an announcement made in the chancellor Gordon Brown's pre-Budget report last Decemb...Read More
Pet policy disputes rise by 60 per cent
After the Financial Ombudsman Service (FOS) reported a massive rise in complaints about pet insurance policies last year, experts are urging that owners read the small print to check that their animal is adequately covered.The majority of the cases called were found in favour of the insurers because policyholders had failed to disclose pre-existing conditions.FOS spokeswoman Emma Parker told the T...Read More
Abbey Home Insurance burglary warning
Domestic burglaries increase during recessions, meaning homeowners should be on guard, according to research from Abbey Home Insurance.The firm revealed that there was a 33.8 per cent rise in the number of burglaries in England and Wales during the last recession between 1990 and 1992.In addition, statistics from the British Crime Survey recorded a similar trend.It warned that, despite the temptat...Read More