Aviva Life Assurance Mis Sold?

MikeCrux1

26 Years ago I took out a life policy from Norwich Union, now Aviva for a guaranteed £50,000 death benefit. In 2007 Aviva reviewed the policy and lowered the death benefit to £23,281. Aviva say they wrote to me, but as I didn't reply assumed I was in agreement. Only recently I found out that the benefit had been reduced. Aviva replied to my complaint and sent a copy of the policy's technical specification. I have the original policy and letters, that do not mention reviews and do not have a copy of the technical specification. I can only assume I was never given the document as I have a thick file of all correspondence from Aviva. The annual statement I get does not mention the reduced benefit amount. Up until 2007 these statements did.
After 26 years of payments I feel that Aviva deliberately mis sold the policy and continued to obscure in their annual statements that the guaranteed death benefit had been reduced. Aviva have suggested that this complaint cannot be considered by the Ombudsman as it is beyond the six year cut off point. Appreciate any advice. Mike

dunstonh

I have the original policy and letters, that do not mention reviews and do not have a copy of the technical specification.

Virtually all whole of life plans from that era were reviewable. Don't expect modern disclosure levels on something from 26 years ago. It would have been in the policy terms though.

I can only assume I was never given the document as I have a thick file of all correspondence from Aviva.

But would you have read it anyway?
After all, you didn't read the lat review letter.

After 26 years of payments I feel that Aviva deliberately mis sold the policy and continued to obscure in their annual statements that the guaranteed death benefit had been reduced.

Did Aviva actually sell you the policy? Most of these would have been put in place by third parties. I recall the docs from that period and reviewable policies with an investment element did contain the risk warnings about premiums potentially requiring change.

Aviva have suggested that this complaint cannot be considered by the Ombudsman as it is beyond the six year cut off point.

The FCA rules require a complaint to be made within 6 years of the inception date or three years from being reasonably aware of an issue. Both rules need to be met. So, seeing as you are complaining about an event that occurred in 2007, they do appear to be applying the timebar rules correctly.

Appreciate any advice.

Not much you can do if it has been time-barred. Sometimes the time bar is applied incorrectly. However, it's difficult to argue about 2007 to 2018 not being enough time to meet the criteria.

Maybe take more notice of letters when they are sent to you? If you had, this event would not have occurred.

The type of plan you had started to go obsolete around 1995 (pure term assurance taking over from the old investment backed whole of life plans). You should look to see what pure life assurance with no investment element would cost you today as often you find the costs have fallen so much that you save money by changing. Only blocker is potentially your health.