Norwich Union has agreed to compensate an IFA and his client over a criticalillness policy.
Andrew Oliver & Co principal Andrew Oliver told Money Marketing that NU advised the client to cash in an existing guaranteed premium CI policy and replace it with a reviewable policy for a bigger sum assured following a remortgage.
The client only wanted to top up cover for the difference between the old and new mortgage and Oliver has been fighting NU to get the initial terms reinstated.
Oliver also wanted compensation for the client for the difference between the two premiums and for the time he has spent working on the case.
NU says it will do this and has apologised for the delay in its service.
The issue is over an extra £30 a month between the original
guaranteed product and the reviewable product. Rather than selling a top-up policy on a reviewable basis, NU rebroked the entire policy, leaving the client with a more expensive policy and facing possible future increases.
Oliver says: “You have got to look at how they have dealt with the client throughout. First, they missold the product and now they are dragging their heels in sorting it out. They have done absolutely nothing about it for almost three months.”
NU spokeswoman Louise Goffee says: “We want to make sure that the customer is not disadvantaged by this. We will be investigating what has happened and we apologise to all parties for what has happened.”