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Aviva is criticised over restricting IFA redress

An adviser has hit out at Aviva for refusing to pay him his full hourly rate when it compensated him for time spent resolving problems caused by poor customer service.

Oakwood Insurance Consultants and Financial Services IFA Alan Kendrick has made a number of complaints to Aviva this year after a series of delays.

In one case, Kendrick requested a client’s retirement pack on March 21, which was sent three weeks later. The client received his tax-free cash around April 14 but is still waiting for his first annuity payment.

In another case, Kendrick submitted a complaint to Aviva Health about problems he had applying for an income protection quote and obtaining a revised illustration. The application was made in January but not resolved until the end of March.

Aviva agreed to compensate Kendrick based on a £100 hourly rate rather than the adviser’s usual £250 rate.

Kendrick says: “Even when Aviva agreed, it was at fault it restricted the amount of compensation. If mistakes are made they should be put right quickly. I do not want to have to spend between 15 and 20 per cent of my time doing Aviva’s work for it. It is costing me money to put business with Aviva.”

An Aviva spokeswoman says compensation is not intended to reflect loss of profits. She says: “We take a consistent approach to managing compensation, which is why we have set this limit. We feel this is the fairest way of working with a broad base of advisers.”


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There are 2 comments at the moment, we would love to hear your opinion too.

  1. Andrew Buchanan 16th May 2012 at 4:37 pm

    I had exactly the same experience a couple of months ago over a very similar issue. Not only would they not pay my full hourly rate, but they then quibbled over £40 administrator time as well. Their arrogance is unbelievable.

  2. Do not place any more business with Aviva. Simples

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