From the outset, the Coalition Government has sought to deliver a quick and just resolution to Equitable Life’s policyholders.
The Ombudsman recommended that the government should compensate for a relative loss, that is, the difference between what policyholders who invested from September 1992 onwards received from their policies and what they the policies would have amounted to had they been invested elsewhere. It is also necessary to consider the potential impact on the public purse of any payment of compensation.
A total of £1.5 billion has been made available as compensation and all payments to policyholders will be tax free.
Douglas says, “I know how concerned some of my constituents have been about ensuring a just settlement for po licyholders – and I believe that policyholders deserve a fair deal. Although I appreciate that full compensation for every case will not be given , I do hope that people find it a major improvement on where we were under the previous Government.”
The Independent Payments commission will be reporting back to the Financial Secretary to the Treasury, Mark Hoban MP, by the end of January with the proposed design of the payments scheme.
“I have been advised that policyholders should expect the first payment of compensation in the middle of 2011. Policyholders have waited a long time for justice and I would like to assure my constituents that the Government will deliver on our election promises.”