Life Assurance Policy Matured

Crystal05

Hi Everyone,

I'm hoping that someone can help me out with a problem I'm facing.

I have a life assurance policy that matured in June 2009 from Abbey Life.

Previously I had used the policy papers as security for my mortgage with NatWest, but the mortgage has been paid off for many years now without NatWest having to exercise any rights over my policy.

When my policy matured last year I was told by Abbey that they could not pay the sum due because NatWest had not released the policy since my mortgage was cleared.

After several complaints to NatWest they informed me in April 2010 that they had lost my policy papers and then released the policy.

I was then paid the policy sum in March 2010 - 304 days after it actually matured!

I made an official complaint to NatWest about it in March - no action was taken, I continued to complain and finally someone from customer care is trying to resolve the matter.

My question is - NatWest are prepared to negotiate compensation, but I have no idea what I am entitled to.

The sum under the policy is a considerable sum, can I claim interest that I would have recived had the money been placed in a decent savings account? Or will I just receive the 8% simple interest that the Ombudsmen award.

lisyloo

can I claim interest that I would have recived had the money been placed in a decent savings account? Or will I just receive the 8% simple interest that the Ombudsmen award.

Are you aware of decent savings rates at the moment?

I would settle for "just" the 8% if I were you if that's on offer.
Best ISA rates for example are 2.8%.

Crystal05

Ahh my post is worded poorly! Apologies for that!

I am aware of the current poor interest rates. To my knowledge the Ombudsmen award an 8% simple interest rate to compensate for being deprived of the money - not necessarily to compensate for losses. Since I have received the funds they have been sitting in a savings account (as always planned); I'm not sure if the loss of income from a late payout is something that I can claim additionally?

Thanks for your reply anyway!

dunstonh

My question is - NatWest are prepared to negotiate compensation, but I have no idea what I am entitled to.

Possibly nothing if the insurance company have added interest on it. That is normally the case with delayed payments. However, you should push for a goodwill payment and if the funds had a purpose you should emphasise that as the delay would have held them up.