One million Norwich Union policyholders to share £1.4 billion

in Savings & Investments
50 replies 9.3K views
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  • Does anyone know what will happen if you vote No, and your endowment matures before this is looked at again. Will you have lost all opportunity to benefit or will they have to track you down and offer you a new amount.
  • jonnybjonnyb Forumite
    598 Posts
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    defendersv wrote: »
    Does anyone know what will happen if you vote No, and your endowment matures before this is looked at again. Will you have lost all opportunity to benefit or will they have to track you down and offer you a new amount.

    your suspiscion is correct; you would get nothing.
    Karma is a wonderful thing. ;)
  • I've had my policy since 1994, & I have been offered £200, I am saying no.
    I cant understand why, one day I recieved the posh glossy booklets, that must have cost a fortune to print. The following day, a letter urging me to sign a.s.a.p. reminding me that I had to vote yes, to obtain the £200.
    I have since had another couple, along the same vane, and, Call me a cynic, but they seem to eager, over a piiddling 200 quid?
    I have a feeling there is more to this, I smell a rat?:confused:
  • dunstonhdunstonh Forumite
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    I've had my policy since 1994, & I have been offered £200, I am saying no.

    £200 puts you at the very minimum. Chances are that you probably will take 30 years to see that £200 back in furture special bonuses.
    I cant understand why, one day I recieved the posh glossy booklets, that must have cost a fortune to print. The following day, a letter urging me to sign a.s.a.p. reminding me that I had to vote yes, to obtain the £200.

    The distribution of the initial booklets was staggered over a long period and it has meant that the gap between the chaser letter was very short for some but a few months for others. It's been a bit of a mess as well as those that have voted have been sent reminders as well.
    I have since had another couple, along the same vane, and, Call me a cynic, but they seem to eager, over a piiddling 200 quid?

    You are getting exactly the same as those that have £7000 being paid to them.
    I have a feeling there is more to this, I smell a rat?

    You are reading too much into it. It's just Aviva's making a mess of things (as is very common)
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • edited 12 August 2009 at 1:02AM
    GrahamHGrahamH Forumite
    15 Posts
    edited 12 August 2009 at 1:02AM
    What's the likelihood of another re-attribution coming along within 13 years?

    With 12 years gone and 13 left on my endowment policy, the literature examples leave me in the middle ground, and I don't need it now, so am tempted not to accept.

    However, I can't lay my hands on any evidence of other companies having done one of these, apart from a few references to an Axa payout a few years ago. I certainly can't find any trace of a second payout from any one insurer.

    I fully appreciate this decision is a pure gamble, but can anyone offer evidence on the odds of the above being a reasonably wise decision?
  • tightrs wrote: »
    just read through quickly i have been offered £354 and i think i will vote no ,has anyone been offered anywhere near £1400 :confused:
    Hi
    Just found this site as still unsure what to do. Take £274 or hopefully be better off and say no? Any ideas?
  • Phuddles wrote: »
    I've had a letter yesterday offering £676. I signed up today to visit one of the Ombudsman's Roadshows in a couple of weeks and will wait to hear what she has to say before I make my decision. My endowment policy has four more years to run. They've been dragging this out for so long it is unbelievable! The money belongs to policyholders, not shareholders. I have known for a long time that there will be a shortfall on the policy, but since being a Moneysaver I have been paying as much as possible off my mortgage over and above the normal monthly payment rather than paying more into the endowment which was their suggestion. :D
    Hi. Did you go to the roadshow. I have 3 years of an endowment left to run I am still undecided. I have been offered £274. Any ideas?
  • GrahamHGrahamH Forumite
    15 Posts
    OK Denise

    I'm not getting a reply to my question above either, so here's what I've decided - hope it helps.

    The minimum payment I've been offered is £450. I've got slightly less than 13 years to go

    Can't find any evidence that these "special distributions" come along frequently, and there hasn't been a previous one in the 12 years I've had the policy. To me, it feels like there's no more than a 10% chance of getting another one in the next 13 years.

    If there is £1.2billion in the "inherited estate," £500m goes to us and the other £700m goes to Aviva and their shareholders. It's supposed to be split 90% for us and 10% for shareholders in all other circumstances

    (Fundamentally the FSA have suffered regulatory capture, and as a consequence Aviva are allowed to use the spare cash to pay off their mis-selling claims, to make guarantees to future policyholders - new business - and to give a wad of cash to their shareholders. That little lot adds up to the £700m above)

    Had there been a backlash from us, the high court might not approve the scheme, and it would have to be renegotiated for everyone. There hasn't been.

    Consequently, it's in my own interests to accept the cash, as there's little chance of any more coming along before my endowment matures, and little chance of the scheme being thrown out, even though it's a poor deal for us.

    I will however write to the high court in support of the Policyholder Advocate's position (she's on our side), to argue that the FSA incompetence and cosiness to the financial institutions acts against our interests. There's always hope!

    Graham
  • dunstonhdunstonh Forumite
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    The minimum payment I've been offered is £450. I've got slightly less than 13 years to go

    No brainer. Take the money.
    Can't find any evidence that these "special distributions" come along frequently

    They dont.
    Had there been a backlash from us, the high court might not approve the scheme

    The high court have approved similar on the past where the policyholders didnt get a penny. Pearl for example. AMP bought Pearl for just over 1 billion but then eventually went to the high court and got permission to raid Pearl's for just about 1 billion. Effectively, it used Pearl's money to buy Pearl. There is no reason to think that the court would rule in favour of the consumer. The courts are not a consumer champion but will rule on law.
    I will however write to the high court in support of the Policyholder Advocate's position (she's on our side

    She may be on your side but she turned down a number of Aviva proposals that would have seen policyholders end up with more than they are getting now. She also has to take part of the responsibility for putting in a fixed price settlement and not one based on the percentage of the fund on a future date.

    The Aviva re-attribution has been a bit of a mess but at the end of the day, Aviva could quite have easily closed the door, kept the money in the fund (and take charges for running it) and not paid out a penny.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • GrahamHGrahamH Forumite
    15 Posts
    Cheers dunstonh

    Always reassuring if someone else says I haven't got it hopelessly wrong

    Graham
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