If customers are entitled to compensation they will receive a cheque for the amount they have paid for their policy(ies) since 14 January 2005, less any payments they received in respect of the policy(ies), plus interest on the amount owed.
This will apply to all policies and does not depend on when they were sold.
Customers will only receive compensation for the amount paid for their policy since 14 January 2005, as this is the date the Financial Conduct Authority started to regulate insurance products like these.
We will write to tell customers the outcome of our review and whether they are entitled to compensation. For most customers this will be within 8 weeks of them sending their completed original form(s) to us.
If customers claim compensation they will also have cancelled their policy, so they (and anyone else covered by the policy) will lose the benefits it provides.
If customers are currently bankrupt or subject to an Individual Voluntary Arrangement they must consult with their Trustee or Supervisor before submitting a claim for compensation. If it is determined that customers have been mis-sold a policy and receive a compensation payment, the cheque will in the usual course be made payable to the customer, not to their estate, unless we are informed that it should be otherwise.