Endowment complaints - finding what happened
16 Jan 06
How insurance companies can help with information needed to deal with complaints about endowment policies
The Client Relations Office has received an increasing number of complaints since late 2003 about endowment policies and alleged inadequate professional service.
The office has taken many of these through the process and a number of solicitors have also tried to resolve these complaints themselves.
One of the problems which solicitors have faced in trying to resolve these matters is a lack of documentation. The original file about the endowment policy may have been legitimately destroyed before the Society’s guidance was issued in January 2003 indicating that it should be retained until the policy matured.
However, the Society’s experience is that a number of the policy providers – insurance companies – do have information that can help in trying to find out what took place at the time the advice was given.
In order to obtain that information from the policy provider, a solicitor needs first to get a mandate from the client authorising the insurance company to release it.
The CRO experience is that the policy providers will need additional information, including:
- The full name or names of the policyholders – if the original policyholder was single and the policy is now in joint names, it is important to include both names and the date (if known) when the policy was changed into joint names
- The policy number or numbers – if a policy was originally in one name and is now in two names it is possible that the policy provider may have rewritten the policy or issued a new policy with a different policy number
- The date of birth of the policyholder or holders
- The address or addresses to which the policy relates – in many instances the policy which was originally taken out will have been in respect of a mortgage over a property which has now been sold, and the Society has had an indication that it is helpful for policy providers to have a note of all relevant addresses to which the policy may have applied in order to track down the information.
The various policy providers have different ways of dealing with information requests. For example, Standard Life has a specific section known as the Policy Technical Section that can help with this type of information.
If you need further advice or assistance about this topic please do not hesitate to contact Philip Yelland in the Client Relations Office, 26 Drumsheugh Gardens, Edinburgh EH3 7YR (e: philipyelland@lawscot.org.uk).