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.
Over a million Brits drove uninsured last year
A significant number of Britons are driving without car insurance, despite the huge risks involved. In a poll conducted by Sainsbury's Car Insurance, around 1.15 million people confessed to having got behind the wheel of a car in the last 12 months without an insurance policy. The largest proportion of these were young drivers, with those in the 17-24 age range accounting for two-fifths of the tot...Read More
Home insurance warning for cold snap
Home insurance policies will need to be checked over the coming few weeks, it has been claimed, as cold weather is on the way.Home insurer More Than has warned that properties could be at risk of damage as weather forecasters are predicting a sharp deterioration in the weather, with temperatures plummeting.Taking precautions such as checking lagging is in place on pipes and keeping the heating on...Read More
Competition Commission seeks to increase PPI availability
The Competition Commission has today issued a ruling on payment protection insurance (PPI) and its availability when acquiring personal loans, mortgages and credit cards. Initially there had been moves to ban PPI at the point-of-sale for the above financial instruments and allow customers to shop around for the best PPI option available. However, Barclays Bank took the issue to court and the Compe...Read More
Insurance fraud hits new highs in the UK
As the recession continues to bite hard at the everyday population of the UK many insurers have been reporting significant increases in insurance fraud. The latest to join the band of insurance companies suffering from "fictitious claims" is Admiral Group which believes that frauds in the region of £20 million have been carried out by its customers over the last year. In truth the real figure wil...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