Aviva Medios Healthcare - are we being treated fairly?

Guardog

The Exeter Family Friendly product differed in 3 ways from Aviva Medios product as:
1. Guaranty was subject to maintenance of the Society's "continued well-being"; effectively, that meant any UNDER-PRICING COULD BE CORRECTED.
2. Guaranty involved NO OBLIGATION FOR CONTINUATION of NEW MEMBERS/ENTRANTS.
3. NO COMMITMENT was given for LIFE-TIME COVER albeit the policy was clearly long term in nature.

Nevermind, Aviva SEEMS to have sought to achieve same through Guaranty breach, tearing-up FSA Handbook,
fraudulent misrepresentation, and fraud.

FSA invisibility on these concerns continues.
Surprising as one would have expected an FSA hit team to have been parachuted in, due to seriousness of claims.
Also claims might be a few hundred million or over a billion.
As Aviva's latest profits before tax fell 96% to only £87 million (caused by a 6% higher operating profit being impacted by market conditions), claim size has increasing relevance.

Lawton has righfully sought to increase momentum through enlisting support of his MP.

We must await events irrespective of any lack of urgency by FSA to clear-up market uncertainty for thousands of policyholders.

02Jim

Thanks for that on The Exeter Friendly. I have submitted a complaint to the FOS & also asked them whether I should submit the same to the FSA. Is there anything else I should usefully do?

Guardog

All seems fine with your action, O2Jim.

Complaint guidance is provided by Burtwood in his Post dated 13 February; a helpful check due to link with compensation.

Lawton

FSA
The FSA’s response to my MP (who happens by chance to be a Government Minister) has turned out to be minimal - certainly, little respect given to Parliamentary accountability. Maybe this reflects the CEO’s reported fall-out with a Parliamentary Select Committee, which apparently (a) ‘has his number’ and (b) prompted his resignation.

“We will take this information into account in our continuing supervision of Aviva” says the FSA’s Director, Insurance who the CEO asked to respond.

Whilst account of our situation is apparently being actioned in some way, my MP is alive to the response deficiency as he states he’s happy to take up any further points once I have studied the FSA response. I will do that and devise an appropriate strategy but already recognise the correct Parliamentary forum is needed if the FSA’s present cavalier attitude is to be avoided.

FOS
I spoke to FOS to determine whether criminal proceedings would impact upon its actions and was informed they would not except in observance of any judgements; the explanation given was that FOS is solely concerned with financial consequences.
At the same time I asked about timetable and was told that Aviva had now provided its case file and the next action was for an Adjudicator to be appointed who would then make contact.

Criminal action
Experts are now involved for consideration of possible action (NB the FSA does not possess criminal investigative powers).
If action is progressed (which is presently an unknown), prosecutors will be seeking policyholders that took up Healthier Solutions products from Aviva’s hit squad sales team – these are the policyholders that phoned the 0800 158 3101 telephone number given in the November 2011 Premium Notice. Other policyholders will also then be similarly sought and lists will be compiled when and if relevant.

Other phases
There are at least three key ones but they all follow FOS decision subject to there being no criminal proceedings.

PS
1. As I write this, I note the Aviva share price has fallen over 12% over the last 2 weeks – that’s a market capitalisation reduction of more than £1.35 billion. Maybe the market is finding it difficult to come to terms with whether this year’s 96% reduction in profit before tax can be fully recovered.

2. According to Aviva’s Group Chief Executive “Our customers are central to our success” and “customers will only choose Aviva, stay with us and recommend us if we look after them well”. Let’s hope for the sake of Aviva’s share price that its efforts to cause institutions to expect a full profit before tax recovery are not as flawed as its comments upon customers – certainly those possessing Aviva Medios policies; especially as Aviva will need deep pockets if FOS sustains our complaints.

burtwood

FOS's headline recognition of our complaint is, presently, the 20% premium increase.

That’s not helpful to our cause as that aspect accounts for only a few per cent of compensation sought.

Our main loss is the Guaranty and that’s caused by:
(a) Aviva voiding cover for life through its 2005 change to Policy Terms & Conditions;
(b) Aviva voiding Guaranty through stopping New Entrants in January 2010;
(c) Aviva voiding Guaranty through imposing more than one single Age Related Increase when it demanded 2012's 20% premium increase.

Yes, there also SEEMS to have been
(d) fraudulent misrepresentations made in relation to 2010's, 2011's, and 2012's premiums;
(e) fraud when policyholders were caused to relinquish valuable Guaranties for a one-off premium saving when taking-up a Healthier Solutions Policy; and
(f) some 45% of FSA Handbook Principles not complied with.

It would be helpful for complainants to correct FOS’s wrong impression of their loss and complaint unless, of course, they are content with FOS’s current impression of events.

Explanation for change is that 20% premium hike alerted review that led to identification of main problems.

alanthecat33

Dear all,
I'm new to these forums. I have also got a Medios policy and considered moving to the alternative when my renewal was due but decided against it. On Friday I received a cheque for 3 months payments. No letter, no nothing. I rang Medios and was told my broker had cancelled my policy within the three months grace period. This was news to me as I have never had a broker and always dealt direct with NU / Aviva. After some slight apology human error was blamed and they have re-instated my policy. Not happy, especially aftre reading this threat. I have emailed Avivas CEO and will let you know any further developments. Has anyone else had their payments returned, and is this a cheap shot to get us off this now toxic produc?

davidstone

Alan, there's such a thing as a 14 day cooling off period.
However, a 3 month grace period does not exist!!!

Who did you speak to and when are the questions that come to mind.
Who are these people you are talking to!!!!!!!

mwng

FOS's headline recognition of our complaint is, presently, the 20% premium increase. [/FONT][/COLOR]

That’s not helpful to our cause as that aspect accounts for only a few per cent of compensation sought.

You are spot on. We have expanded our complaint along the lines you suggested and hope everyone else does the same.

dogged_2

My family have been Medios Policy Holders since.1995. I have always been suspicious of the takeover from OHRA. It seemed sensible at the time to cover the age related risks by paying for this policy. I felt that for a big company to want this it was either highly profitable which I doubted or they hoped to absorb the policyholders in the future and kill the scheme, removing a competitor at the same time.

When we are young we choose our policy very carefully knowing that to change companies at a later age one forfeits all cover in those areas of our medical histories that have been claimed against previously. This becomes critical the older one gets. Aviva recognises this and is using it to move us to their preferred scheme promising that they will cover past history. Thus, Aviva achieves its goal forcing thousands of Medios policy holders (who have invested over many years in their policies) to new agreements which are more profitable to Aviva and financially detrimental to their clients.

The matter of compensation lies with;
a) The restriction of choice without financial penalties
b) The removal and erosion of the mutual objective and intention of the Policy
c) The removal of the details which made the choice to join the scheme relevant.

The spirit of the contract is as important as the letter of the contract and the agreed expectation is relevant too. These things seem to be what has been manipulated by AVIVA


Reading all the comments so far I feel one of many ordinary people who know little of the legalities being aired by more knowledgeable people. I am interested in complaining to the FSA &FOS but I have no idea what is relevant (other than the 20% increase). I would appreciate what in laymen’s terms I can complain to AVIVA over and what I can write to the FOS and the FSA about. What do I do to protect my claim if AVIVA has acted illegally with my Medios Policy. Meanwhile do I seek another Policy? Will it jeopardise my position? Is it better to forfeit my medical history and consider other companies having lost my trust in AVIVA if they can do this to one set of Policyholders why not others?. Is it possible that a firm of lawyers will look at this and feel there is a case worth pursuing for all the policyholders.

alanjg1

With reference to my first post on 26th January. Based on the comments and views expressed on this thread, I decided to stay with the Medios policy despite the premium increase and the offer of an alternative Healthier Solutions policy.

I just read dogged's post above and find it pretty much echoes my situation and views. Also his last paragraph about guidance with the complaints process:

"Reading all the comments so far I feel one of many ordinary people who know little of the legalities being aired by more knowledgeable people. I am interested in complaining to the FSA &FOS but I have no idea what is relevant (other than the 20% increase). I would appreciate what in laymen’s terms I can complain to AVIVA over and what I can write to the FOS and the FSA about. What do I do to protect my claim if AVIVA has acted illegally with my Medios Policy. Meanwhile do I seek another Policy? Will it jeopardise my position? Is it better to forfeit my medical history and consider other companies having lost my trust in AVIVA if they can do this to one set of Policyholders why not others?. Is it possible that a firm of lawyers will look at this and feel there is a case worth pursuing for all the policyholders".

Would any of the more 'knowledgeable people' on here be willing to post some kind of complaint template that would make it easier for us 'ordinary people' to add our weight to the complaints process.
I want to do what I can but I would like to ensure that I get it right.
Any assistance or guidance would be appreciated.