Equitable Life compensation plan comes a step closer

Published on Tuesday 25 May 2010 22:55

THE government yesterday confirmed it plans to press ahead with setting up an independent scheme to pay compensation to Equitable Life policyholders.

Mark Hoban, financial secretary to the Treasury, said an independent commission would be asked to design a scheme that was "swift, simple, transparent and fair".

He added that redress would not be means-tested and that any compensation would be paid to former policyholders and the dependants of policyholders who had died, as well as to existing members of the society.

The Equitable Life Bill, which was included in the Queen's Speech, also gives the Treasury statutory authority to "incur expenditure" in order to pay compensation to people who lost money through the collapse of the society.

It is now nearly two years since the Parliamentary Ombudsman called for policyholders to be paid redress after finding ten instances of maladministration by regulators and Whitehall officials in relation to Equitable in the period leading up to December 2001.

Mr Hoban said: "For almost a decade, Equitable Life policyholders have fought for a just resolution in relation to losses suffered as a result of regulatory failure.

"I am very aware of the acute concern among policyholders who have suffered loss, and the desire to achieve redress quickly."