Norwich Union Maturing Policy

anntargett

:mad: :mad: :mad: My policy matured today after 18 years of paying by direct debit and I was expecting my cheque to arrive today ,which it didn't. On phoning Nowich Union I was told 'not to worry it should be paid about 1 month late and I would receive interest of 3.75%. I couldn't believe it, - apparently they had an unexpected backlog - after all 18 years warning of me wanting MY MONEY wasn't enough! After absolutely creating they now say they will try to give me my money 2 weeks late instead of 4+.
I am appalled that what I thought of as a respectable company can just hold on to the claim payments which were promised when the policies were taken out. They appear to think this is normal. I worked in insurance for most of my working life and we only paid claims late if the policyholder had submitted relevant documents late.
I would certainly advise anyone not to take out insurance with Norwich Union,:mad: :mad: :mad: :mad: as with the credit crunch it appears they need our money and will hold on to it for as long as they can.
Luckily I am not, as obviously many would be, desperate but I am furious and will lose cash.
Ann:mad: :mad: :mad:

dunstonh

My policy matured today after 18 years of paying by direct debit and I was expecting my cheque to arrive today ,which it didn't.

Thats asking a lot isnt it? For it to mature, be processed and be on your doormat all on the same day is not feasible.

You would normally expect a payment within 10 days of maturity. Old fashioned conventional with profits plans used to be able to pay out quicker as they knew hte bonus rates and amounts paid often months before. Unit linked and unitised with profits are invested right up to the day of maturity and have a daily value.

Generally, they are allowed upto 30 days to pay out and even with the backlog on legacy business they are unlikely to take that long. I have been finding requests on legacy plans with NU being told 3-4 weeks but actually being done within 2. The exeception recently has been old provident mutual plans which do seem to take a month.

I worked in insurance for most of my working life

in which case you would know this is normal. Especially on legacy business.

and we only paid claims late if the policyholder had submitted relevant documents late.

which suggests your investments were conventional with profits and not unit linked or unitised.

I would certainly advise anyone not to take out insurance with Norwich Union,

Well that is just silly.

anntargett

The amount that they quoted me in April is still the same today so claim should and could have been paid today. I had a unit linked policy with Friends Provident - it was paid on the due date.

clear_blu

I agree with Anntargett that it should have been paid on time or at least within a couple of days of the due date.I have recently had two policies mature (with another company) and I received each cheque ON the due date so it is quite possible. I believe that it is not an unreasonable expectation.

dunstonh

I had a unit linked policy with Friends Provident - it was paid on the due date.

How did they determine the final fund value then as the price used would be on close of business on the day of maturity? Yet you say you got it paid on that date. Now that would be good service to be able to use the price at close of business that day yet get money paid to you that morning before the price is determined.

The amount that they quoted me in April is still the same today so claim should and could have been paid today.

That makes it sound like a conventional with profits plan then. In which case paying it out on time (or just before) is normal.

Is it an original NU policy or one of the companies they have taken over? CGNU service levels are fine at the moment but as I mentioned already, the legacy companies do have delays.

anntargett

I don't remember the final details re Friends Provident Unit linked policy it must have been valuedWIf the policy states thAT approximately one week before maturity but the cheque was received by the due date. With regard to the Norwich Union policy it was an endowment with a sum asured, annual bonus and terminal or final bonus. Norwich Union admit it should have been paid on time but blame a backlog. I stand by what I said earlier, I am not an idiot, in fact I am in Mensa, I worked selling insurance and dealing with Insurance in an office and in fact worked in the claims department of Friends Provident.

Ann:mad:

Kevie192

Take a look at this thread: http://forums.moneysavingexpert.com/showthread.html?t=888169

It might help you out