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.
Civil servant found guilty of car crash scam
As if we needed another reminder of the various insurance scams active in the UK at the moment, today saw a civil servant jailed for 4 1/2 years for his part in a £1.6 million "cash for crash" scam. Mohammed Patel, who worked at the Department of Work and Pensions, was found guilty of being part of a gang which staged road traffic accidents by breaking quickly and forcing cars behind them to cras...Read More
Tell your insurer before making home bio diesel, firm warns
Making bio diesel at home can be dangerous - and might invalidate home insurance claims if an accident occurs.Defaqto said today that mixing cooking oil with ethanol and caustic soda, a common method of making the fuel, was becoming increasingly common among householders as they battled to counteract price rises at the pump.The firm made the comments following the widely-reported case of a Northam...Read More
Will the rise in national insurance affect the NHS?
The Conservative party has today stepped into the row regarding a 1% increase in national insurance from 2011. While there is no doubt that the move will raise billions of pounds for the UK government, allowing them to strengthen the UK plc balance sheet, many people have overlooked the fact that the NHS is the U.K.'s biggest employer. A 1% increase in national insurance will increase the wage bil...Read More
Insurers forced to be clearer over premiums
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LV Fined £840,000 For Miss-Selling Insurance Policies
Liverpool Victoria is one of the oldest insurance companies in the UK market but a near perfect copy book has been blotted somewhat with news that the group has been fined £840,000 by the Financial Services Authority. The fine is a huge blow to the company which has long been regarded as one of the more customer friendly insurance companies.
The fine relates to the sale of persona...