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.
Insurer’s urge Consumers to hide Christmas Gifts
The Association of British Insurers (ABI) has urged Christmas shoppers to hide gifts in the run up to the festive period. This comes after insurance claims last December reached £35m, with 23,000 burglaries reported in relation to stolen Christmas gifts. The most common targets have included parked cars with gifts left inside as well as homes where gifts are left on show or unattended, while...Read More
Insurer issues car headlight warning
Four in five drivers do not know the Highway Code's guidelines on using headlights, esure said today.According to the insurer, around one million motorists have also suffered either a road accident or a near-miss due to not turning their lights on.Analysis from esure also shows that "more and more" local authorities are turning off some of their streetlights at night in order to save money - a tre...Read More
Homeowners warned to consider Christmas fire risk
Homeowners have been urged to consider the potential danger for an accident when putting up Christmas lights on their home.While those who go overboard with Christmas lights and decorations will not have their home contents policy affected in any way, Halifax Home Insurance said, they do need to ensure that simple safety tips are followed in order to minimise the risk of fire.David Rochester, head...Read More
Britons 'don't think they need' travel insurance, poll finds
More than 13 million Britons will go on holiday this summer without first taking out travel insurance, Sainsbury's Finance said today.According to the firm, one in five people believe that they "can't afford" the cover - while a further third feel that they "do not need" it.Surprisingly, youngsters were found to be showing a more responsible attitude to their summer holidays than their elders.Whil...Read More