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NU error blamed on temp

Bungle Busters is back by popular demand, with Norwich Union being slated by an IFA for appalling admin procedures that left a client without life cover for six months.

The company was told last June that direct debit instructions on a mortgage protection policy had not been received. The information was given to an NU temp who, not knowing what to do with the information, ignored it.

It took until January for NU to realise that no payments had been made and the policyholder got a demand for six months&#39 premiums.

IFA Financial Independence is furious that its client was exp ected to make up the payments when they had, in effect, been without cover for more than six months because no premiums had been paid. NU has agreed to waive the back premiums after the IFA turned down a request to pay back half.

Partner Karen Shaw says: “It took them six months to realise the problem. The information was given to a temp who did nothing with it. How can processing be left to chance? They would not have paid out if a claim had been made.”

An NU spokeswoman says: “This was an unfortunate case of a system error at our end. It does not happen all the time and it has been resolved.”

Financial Independence says this is one of a catalogue of NU errors. It is also battling over a critical-illness claim which it says was not pro cessed on time, leaving a client diagnosed with cancer without cover.

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