Insurers under fire on Maxwell: Fraud policies declared void
Trustees of all the main pension funds that were ransacked by Robert Maxwell were questioned yesterday by the Commons Social Security Committee on the progress made towards recovering money for the pensioners.
The trustees deplored the fact that pounds 75m worth of cover from two insurance policies, one a trustees' indemnity and the other a general policy covering all the officers of Maxwell's companies against theft, were under dispute. Neither the first policy, written by a syndicate of UK insurers, nor the second, headed by a US company, American Insurance Underwriters (AIU), were being paid. The trustees said the insurance companies' argument was that since the frauds committed were not referred to in the insurance documents when the policies were renewed, the policies were void.
David Shaw, a Conservative MP, said: 'The insurance companies have behaved rather like other financial institutions (in the Maxwell affair), in that they made very little inquiries about the policies. Even the most elementary checks were not made.'
The trustees said they were bitterly disappointed that the companies were not paying up because of 'an absurd technicality.' They added that AIU has asked the US courts to establish that the policies are void.
It also emerged that more than 3,000 Maxwell pensioners out of a total of 32,000 have still not been traced by the four main groups of trustees, 18 months after the death of Maxwell. Jeremy Corbyn, a Labour MP, said he found this 'astonishing'. Richard Thomas, a director of Law Debenture Trust Corporation which is trustee of the Maxwell Communication plan, said tracking pensioners was complicated, since some had been employed by one Maxwell company, paid by another and given a pension by a third.
Diving in at the deep end is no excuse for shirking the style stakes
- 2 Loom bands: Bids for dress made from colourful rubber reach almost £154,000 on eBay
- 3 PornHub begs users to stop uploading video clips of Brazil getting beaten 7-1
- 4 Why I'm on the brink of burning my Israeli passport
- 5 L'Oreal cuts ties with Belgium supporter Axelle Despiegelaere after hunting trip photographs
Instagram of US airport security chiefs: Lipstick knives and IED training kits among items seized
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Loom bands: Bids for dress made from colourful rubber reach almost £154,000 on eBay
Israel-Gaza crisis: Eight killed in Gaza Strip cafe while watching World Cup semi-final
Supermoon 2014: When and why will the moon look bigger and brighter this summer?
Sustained immigration has not harmed Britons' employment, say government advisers
Australia facing international condemnation after turning around Sri Lankans at sea
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
There’s a nasty smell in the political air – and it’s coming from the Tories
iJobs Money & Business
£50000 - £70000 per annum: Harrington Starr: Business Analyst Consultant (Fina...
£300 - £350 per day + competitive: Orgtel: My client, a leading bank, is curre...
£28000 - £32000 per annum + pension, 25 days holiday: Ashdown Group: A highly ...
Negotiable: Randstad Education Birmingham: Randstad Education are seeking a Fi...