Endowment Compensation Rejection

GRENADIER_3

My husband and I have made a claim recently but have been told we are out of time. The Insurance Company sent me copies of letters that they say were sent to my husband and I in 2003 and 2005 (Royal Life) - we never received the letters. I wrote back stating this and said we did not realise our endowment could have a shortfall until all the media attention hit the headlines in 2005 - we panicked and cashed in our endowment to offset it against changing to a repayment mortgage. We didn't realise at that time that we had cause for redress. The insurance company have said in so many words it is not there problem we did not receive the letters. Do you think we can pursue the matter further?

dunstonh

It is unlikely the insurance company or the FOS would agree with you. You managed to get the proceeds from the surrender ok but none of the letters warning you beforehand. The post is poor at times but its a bit too much of a coincidence for you not to get any of the warnings.

moneysaver

I was in the same situation with Royal Life(Phoenix) we had the same problem & it took a year to sort out only through the Ombudsman. They sent out warning letters to me which I never recieved, but I challenged it & found out that they were sent to an address that I had never stayed at. So I was right when I said I had never recieved my letters from them. I do not know about your case but I also think that when they were changing from Royal Life to Royal & Sun Alliance around about 1998/1999 they had some sort of computer fault because we never recieved any bonus statements from them for the years 1999 to 2003. We then contacted them at this time & the statements started to arrive. So we never recieved any warning letters during this period.

You never recieved any statements years 2003 & 2005, did you get one in 2004?

Moneysaver

turbobob

Yes if they have not been sent to the correct address then you have a case. Otherwise then its doubtful. I hate to say it but the media attention regarding endowment shortfalls started a long time before 2005.

By the way, the important letters in this are the endowment review letters (the red status "high risk of shortfall" letters specifically) and not merely annual bonus or unit statements.