reclaiming Generali Vision plan premiums

Caribbea

I have some serious problems with Generali Vision plan signed 2 years ago in the Caribbean with an independent broker consultant for Generali Guernsey. Based on misleading information of the premium based Administration Charges, I was told to put all my savings into this first year and then reduce it afterwards without telling me that in the future I would have to pay all charges based on this first payment. The more I dig the worse it gets. Anybody has bought Generali Vision Plan?

dunstonh

I believe that the sale of these plans have much lower regulation and consumer protection to those sold in the UK. The reputation of advice outside of the UK to ex pats is pretty poor. Some regions have really suffered big time. These types of plans have long gone from the UK.

You will have to look at the regulations in force in your country or residence.

Merlinstar69

I had a signed up to this plan approx 1yr ago in Germany and this initial premium problem first came to me a couple of months back. Indeed it seems it would make more sense to start with a modest payment and then after the min period (in my case 2yrs i believe) to increase this. This was also not pointed out by my broker. I'm still undecided about how to move forward with this...

I was planning to refer you to the Toytown Germany forum, but see that you've already visited... There is quite a bit of scare mongering on that forum and honestly i'm really unsure if the Vision plan is a good deal for expats or a 'major criminal scheme' as suggested in the Toytown forum.

Please let me know what you decide and how you get on.

dunstonh

honestly i'm really unsure if the Vision plan is a good deal for expats

If you were in the UK, it would be considered obsolete, old fashioned and expensive. That style of plan has been gone for over a decade here as there is no place for it.

They can get away with it abroad as they do not have the same high standards that the UK has.

bbqlx50

Hi All,
I unfortunately signed up for the Generali Vision plan via a large IFA (DV's) while living in Dubai 3 years ago, I have now since moved back to the UK. The initial period of the plan is now complete and I have invested $121975 USD and the plan is worth $153222 USD. I was told (wrongly) from day one by the IFA that once the initial period was finished I was free to do whatever I liked with the plan although it was best to keep it in. Last week I enquired what the surrender value would be and was told it would be $13475USD - basically they are taking almost 90% of the value of the fund in admin fees. I looked at the T&C’s document I was sent by Generali after I set up the plan and under Surrender Value it states the following “
The Investment Value of the Policy less any: accrued charges; pro rata investment administration charges due; administration fees which would have otherwise been deducted over the remaining Premium Payment Term; applicable Fund exit charges and applicable early discontinuance charges.” I’m guessing this means as this was a 25year policy and I want to surrender it after 3 years they are applying 23years worth of charges to it. Obviously this was never explained to me by the IFA.
I’ve contacted them about this but got nothing back yet and from what I read on various other BB’s I won’t hold my breath.
Can anyone give me any advice as what to do or is there anything I can realistically do get my money (or at least a good % ) out of the plan? I don’t want to pay any more into the plan but I know the fee’s keep ticking over for the next 23 years. I guess too as I took the plan out in Dubai that I have no recourse with the FSA, even though the plan is now being managed by the UK arm of the IFA.

Any advice much appreciated

Thanks
Sean

dunstonh

I guess too as I took the plan out in Dubai that I have no recourse with the FSA, even though the plan is now being managed by the UK arm of the IFA.

Unless you see a real IFA under FSA authorisation, you do not get the consumer protection. Seeing someone that is using the IFA tag but not actually authorised under FSA regulation (and therefore doesnt meet the IFA criteria in the UK) gives you no consumer protection unless that adviser was authorised in the country in question.

bbqlx50

Dunstonh,
Thanks for replying to my post. Do you have any other advice on what my options are to recover my money? Or would I be better off in the long run leaving my money in the plan and hope its worth something more than a packet of crisps in 23 years time?
Thanks
Sean

dunstonh

Do you have any other advice on what my options are to recover my money?

The best bet is to see what consumer protection exists in the country you purchased it from.

would I be better off in the long run leaving my money in the plan and hope its worth something more than a packet of crisps in 23 years time?

These plans are often woefully obsolete and expensive. However, they can suffer tax penalties depending on your tax position and country. It isnt something that we can answer from afar. I would suggest trying another local firm and see what they have to say. Remember that the firm that sold this is probably still being paid renewal commission. So, they owe you advice as well.

When regulation stepped up in the UK, a lot of those that couldnt meet the standards here went to work abroad and targeted ex pats. Spain and Middle East were particularly hit. The pacific region is suffering in much the same way now. That doesnt help you but it may help others. Just because someone gives themselves a title, doesnt mean they are entitled to use it or that the meaning of that title carries the same meaning in another country.

Jalama

bbqlx50 wrote: »

Hi All,
I unfortunately signed up for the Generali Vision plan via a large IFA (DV's) while living in Dubai 3 years ago, I have now since moved back to the UK....

Sean, I have almost similar case. I have signed up via DeVere as well, but in Moscow, Russia. Also for 25 years, and similar to your case, I was not told all the true on initial payments and actual charges in case of surrender in advance. I have invested $34500 (investment value $50000) and just inquired that encashing value would be around $4000. My agent (DV) even did not want to acknowledge that surrender is possible, just saying that all initial premiums stay till the end of the plan and will be offset against the plan charges and the best option is to continue payments.

I'm not going to continue this plan, as it is clearly deceitful plan with misleading terms and conditions. I acknowledge my fault as well not paying enough attention to the T&C in advance, this is very expensive lesson to learn.

Cheers,

Jalama

dunstonh wrote: »

The best bet is to see what consumer protection exists in the country you purchased it from.

Please advise how consumer protection works? The T&Cs of contract can be acknowledged as not appropriate?

Thanks,

dunstonh

Please advise how consumer protection works? The T&Cs of contract can be acknowledged as not appropriate?

The level of consumer protection will depend on your country of residence and where it was bought.

As already mentioned, this type of plan has long gone in the UK but that doesnt stop it being retailed in other countries where standards may not be at the same level of the UK.