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Equitable Life compensation details revealed
The government has announced further details of the compensation to be paid to those who lost money when Equitable Life ran into trouble 10 years ago.
From the £1.5 billion compensation pot allocated by the government, £775 million will be shared by around 945,000 policyholders. This amounts to a reimbursement of less than a quarter (22 percent) of the losses suffered.
The rest of the pot will be used to repay, in full, the 37,000 pensioners who used their investment to buy a with-profits annuity.
Overall, roughly 100,000 policyholders will receive no payments, as their losses were less than the administration costs of making such an award, while a further 530,000 will receive between £10 and £250.
At the moment, policyholders do not need to take any action to receive their payments, as the practical arrangements are still being decided on and will be published this spring.
However, the oldest eligible policyholders will receive their compensation first, followed by the beneficiaries of deceased policyholders, and all payments should be made within three years.
