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Daily Insurance Industry News
Friday 19th of January 2018
July 22, 2010

Equitable Life compensation scheme details due in October

by Gill Montia

Story link: Equitable Life compensation scheme details due in October

The Chadwick report on the part government maladministration played in the losses suffered by Equitable Life policyholders has been published today, and Treasury minister, Mark Hoban, has announced that details of a compensation scheme will be included in the Autumn Spending Review.

However, the minister describes Sir John Chadwick’s review as “just one of the building blocks in resolving what is a complex matter”, adding that other judgments will need to be made in determining the final shape of the scheme.

The impact of any scheme on the public purse has to be considered and the recommendations of the report will therefore need to be aligned with what is affordable.

Mr Hoban acknowledges that Equitable Life policyholders have fought for a just resolution for over a decade and is promising “a swift, fair and transparent” offer of compensation, details of which will be made public on 20th October.

Equitable Life came close to collapse in 2000 when it could not deliver the returns it had promised.

At the time, over one million savers lost up to 50% of the value of their pension funds.

 

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