Pass The Parcel
The endowment scandal has created a legal version of pass the parcel as policyholders claim damages from those who mis-sold these useless products and they, in turn, claim damages from insurance companies etc.
Legal Week recently reported that Reynolds Porter Chamberlain (RPC) is facing a multimillion-pound negligence claim relating to its involvement in a case brought by Standard Life.
Standard Life Assurance recently won a case against AON, and stands to be awarded up to £75M.
Aon has brought its own negligence claim against RPC, as a third party to the proceedings, and a second trial will now take place to decide whether or not the firm was negligent.
Aon's claim against RPC argues that the firm did not recognise that the wording of the policy meant claims could not be grouped together.
Now don't you think that all this trouble, time and expense could be avoided if the life assurance companies simply underwrote these useless, underperforming and badly managed polices?
Showing posts with label aon. Show all posts
Showing posts with label aon. Show all posts
Thursday, March 06, 2008
Wednesday, February 27, 2008
Sauce For The Goose
Sauce For The Goose
It is refreshing to read for once a story about a life assurance company suing a broker for mis-selling, rather than an endowment policy holder suing a broker or life assurance company.
In this particular case Standard Life sued brokers Aon for advising it to take out the wrong indemnity insurance, to cover claims for mis-selling of mortgage endowments policies.
I would venture to suggest that had they not mis-sold the policies in the first place, they would not have needed to take the cover out!
Standard Life won the case and stands to gain £75M, the final amount will be determined at another hearing.
The judge ruled that Aon had been negligent, as no reasonably competent broker could have concluded that Standard Life's needs were clearly met by the policy.
I can't but help feel a small amount of shadenfreude over this.
Now at least one life insurance company may know what the millions of us, who were sold these useless underperforming endowments, feel like.
It is refreshing to read for once a story about a life assurance company suing a broker for mis-selling, rather than an endowment policy holder suing a broker or life assurance company.
In this particular case Standard Life sued brokers Aon for advising it to take out the wrong indemnity insurance, to cover claims for mis-selling of mortgage endowments policies.
I would venture to suggest that had they not mis-sold the policies in the first place, they would not have needed to take the cover out!
Standard Life won the case and stands to gain £75M, the final amount will be determined at another hearing.
The judge ruled that Aon had been negligent, as no reasonably competent broker could have concluded that Standard Life's needs were clearly met by the policy.
I can't but help feel a small amount of shadenfreude over this.
Now at least one life insurance company may know what the millions of us, who were sold these useless underperforming endowments, feel like.
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