Equitable Life in payouts slow lane
The Government is set to miss its target of paying compensation to Equitable Life's former policyholders by the middle of the year.
An update on disbursements under the Equitable Life Payments Scheme, released at the weekend, showed that fewer than 10 per cent of 982,000 pension and bond investors eligible for payments have so far been contacted by the Treasury. Also, only around 30 per cent of 37,000 eligible "with profit" annuities investors have thus far received a payment.
The payout scheme started last June. By November less than £1m of payments, out of a total allocated pot of £1.5bn, had been made, with just 3,000 former policyholders receiving payments. The Treasury argues that the latest figures show that decent progress is finally being made. But according to the Equitable Members' Action Group (EMAG), which campaigns on behalf of policymakers, the Government is still not moving fast enough. EMAG says that to hit their June 2012 target of compensating pension and bond policyholders, the Treasury would need to raise its despatch rate of letters from 10,000 per week, to around 40,000 per week.
Equitable Life was one of the biggest mutually owned life insurers in the world, with around 1.5m policyholders. The company failed in 2000 after making promises to some policyholders that it could not afford to keep. In 2008 the Parliamentary Ombudsman said that regulators had failed to protect investors. In October 2010, the Chancellor, George Osborne, announced that the Government would pay compensation. According to the Treasury, the "vast majority" of policyholders will receive compensation by this summer.
- 1 Home Office says Nigerian asylum-seeker can’t be a lesbian as she’s got children
- 2 What happens to your body when you give up sugar?
- 3 Drugs Live cannabis trial: Hash is less harmful than any other drug, expert claims
- 4 Turkish Airlines flight TK 726 crash-lands on Nepal runway amid dense fog
- 5 Apple and Google users being spied on for a decade because of 'Freak' security flaw
The City of the Monkey God: Archaeologists claim to have found city lost for 1,000 years in remote Honduran jungle
Turkish Airlines flight TK 726 crash-lands on Nepal runway amid dense fog
Japanese island overrun with cats after population explodes
Bubonic plague-carrying fleas found on New York City rats
London property boom built on dirty money
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Durham Free School: 'Creationism taught at' free school facing closure
Ukip would cut billions from Scottish budget to fund English tax cuts
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
iJobs Money & Business
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
Voluntary post, reasonable expenses reimbursed: Reach Volunteering: Would you ...
£36,000 - £40,000: Christine McCleave: Are you looking for a new opportunity a...
£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...