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Daily Insurance Industry News
Tuesday 21st of May 2019
March 16, 2010

New challenge for Equitable Life policyholders

by Gill Montia

Story link: New challenge for Equitable Life policyholders

Furious Equitable Life policyholders are rejecting the latest proposed offer of compensation, as set out in a new report by Sir John Chadwick.

In 2008, Parliamentary Ombudsman Ann Abraham recommended the establishment of a scheme that would consider individual claims for compensation from those who lost money when the failed mutual came close to collapse ten years ago.

In a controversial act, the Government rejected Ms Abraham’s findings and proposed that only policyholders who had been “disproportionately affected” should receive compensation.

Last year, the Equitable Members’ Action Group (EMAG), which represents around 21,000 policyholders, was successful in securing a High Court ruling against the limitations imposed by ministers.

However, Government adviser and retired judge, Sir John Chadwick, has now published his third and final interim report on the Equitable saga, which EMAG has described as a “treasury stitch up”.

EMAG’s general secretary, Paul Braithwaite, told the BBC: “The latest interim report from Sir John Chadwick shows that the Treasury is attempting to retry the case, using actuarial sophistry to distort the figures, instead of accepting the recommendations of compensation found by the Parliamentary Ombudsman and upheld by the High Court.”

He added: “The logical conclusion of this sham process is that the government will deny all obligation to compensate policyholders for the damage done by serial maladministration and only paltry discretionary payments will be made on the basis of charity, not justice.”

 

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