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.
What insurances can you reduce to save money?
The problem about the insurance market is the fact that each type of insurance is there for a reason even if it is not compulsory. However, when people are short of money, as many are in this current financial crisis, it can be very easy to either cancel or reduce all kinds of insurance cover from the car to your home, from the pet to your healthcare. But there are risks involved and sometimes i...Read More
Foreign HGVs 'Cause UK Road Safety Threat'
Lorries from overseas are causing a potential car insurance threat on UK roads, Liverpool Victoria said today.According to the car insurance provider, the number of heavy goods vehicles (HGVs) from elsewhere in the EU has increased by 33 per cent since 2001, and will grow by a further 18 per cent before 2013. This means that, currently, around one lorry in seven being driven in Britain is of forei...Read More
UK insurance trap could hit 7 million people
It has been revealed that a number of UK insurance companies have small print built into their contracts, one of which demands that those acquiring policies need to reveal any past convictions or minor offences against their name. A recent case regarding a property which was the subject of an arson attack brought the small print to light when a £241,000 payment was paid back to Aviva after the co...Read More
Northern Ireland car insurance under investigation
A report by the Consumer Council has confirmed the shocking find that car insurance in Northern Ireland is costing consumers in excess of £136 million a year more than any other area of the UK. On average it is estimated that an extra £300 a year is added to annual cover premiums with more and more of the population now unable to afford insurance.
Surprisingly, the hardest hit are...
Travel insurance urged for skiers
People heading off on skiing holidays have been urged to take a moment to think about their travel insurance requirements.InsureandGo has warned travellers that they should ensure they have adequate travel insurance policies in place when heading to the slopes this winter.Spokesman Perry Wilson also warned skiers to make sure that they take proper precautions when on piste this winter and do not d...Read More