We have set up a ‘scheme of arrangement’ for reviewing whether policyholders are entitled to compensation. Find out more about the scheme here. The scheme includes a process for paying compensation, where it is due, as quickly as possible. More information on the scheme process can be found here.
The scheme became effective on 31 January 2014 and we have now written to customers to ask if they want to be considered for compensation and to cancel their policy. We have included a form that will have to be completed and returned to us, to be received by us by 30 August 2014.
If customers are entitled to compensation we will return the amount they have paid for their policy since 14 January 2005 (the date the FCA started to regulate insurance products like these), less any sums paid out under the policy, plus interest on the amount owed.
If a customer claims compensation they will also have cancelled their policy, and they (and anyone else covered by the policy) will lose the benefits it provides.
Customers do not have to use and pay a company to claim compensation on their behalf.
If you are satisfied with the policy, or the manner in which it was sold to you, you do not need to do anything. If the policy is still live, it will not be cancelled under the scheme and you will continue to benefit from it.