The Claims Process

The Endowment Mis-selling Claims Process

Overview
If you believe you were mis-sold a mortgage linked endowment policy that now has a shortfall, it is the endowment providers' responsibility to prove you were given the best advice.

The claim process from when you submit your policy details to getting a decision from the Life Office takes approximately twelve to sixteen weeks. This will vary depending on the workloads of your Life Offices. The FSA (Financial Services Authority) has set a guide time of eight weeks for Life Offices to review and make a decision.

There are four stages to the selling process:-

Submit Details
Review your claim
Send out Instructions to Proceed
Proceed with claim
Claim Completion

Submit Details

The first step is for you to send us your policy details through our online form by clicking here.

Either before filling out the online form or later when you recieve a claims pack you will need to obtain the current 'surrender value' of your endowment policy and the name of the Company that sold you the policy. This information can be obtained over the phone from your Life Assurance Company (Life Office).

Reviewing Your Claim

The information you fill out on the form will be sent to our recommended claims partner. The claims handler will review the circumstances surrounding the sale of your endowment policy to establish whether there are grounds for a mis-selling claim.

Send out Instructions to Proceed

Where it has been identified that you may have a mis-selling case and once you decide to proceed with the claims company assistance, your claim documents will be prepared and delivered to you. This will confirm the terms of business upon which your claim will be handled. An adviser from the claims company will answer any questions you may have and will help you to complete the documents.

Proceed to Claim

Once the claims advisor have received your instructions to proceed and you have sent back your claims document, the adviser will contact you with a view to acting on your behalf, they will handle all matters that arise from start to completion. You will not be charged unless your claim is successful.

You will have the peace of mind that your claim is being dealt by a professional claims handler and that the adviser will act in your best interests to recover any damages you have suffered as a result of being mis-sold a mortgage-linked endowment policy.

The claims team will write a detailed letter, noting your circumstances and your entitlement for shortfall compensation. Whilst your mis-selling claim is being handled by the claims team an adviser will be on hand to discuss thoroughly with you the situation, and will give you updates on the claim progress.

Once the Life Office agrees that there is a valid shortfall and the policy was mis-sold, the Life Office will calculate the shortfall compensation due to the policy holder. The claims handler will check this figure to ensure that the amount calculated fits in with mortgage fundamentals and other calculations. If the figure appears lower than the claims handler believes the claimant is entitled to, then the policy holder will be informed. The claims handler can appeal the figure to the Life Office; such an appeal will only be performed where in the extensive experience of the claim management company they consider there are reasonable grounds for believing that the level of compensation will be increased.

There will be occasions when Life Offices will reject a claim, believing the case has no merit. This is not the end of the claim process. The Government Financial Ombudsman Service known as the FOS can rule on appeals against Life Office decisions. On many occasions the FOS will rule against the Life Office, granting the mis-selling claim valid. The Ombudsman's decision is final.

Claim Completion

After the claims process has drawn to a successful claim, often several months after, the Life Office will pay out the monies owed. It is not unusual for a Life Office to take six months to year before paying out a claim. The claims handler will be available to you throughout the process, tracking the claim and ensuring the monies are paid without unnecessary delay.