Search

Aviva faces pay-outs of more than £300m following underpayments blunder

09:13 13 February 2014

Aviva, Surrey Street, Norwich.

Aviva, Surrey Street, Norwich.

© ARCHANT NORFOLK 2010

Insurance giant Aviva has vowed to put right an underpayments blunder which could see nearly 400,000 customers compensated following a series of mistakes.

shares

The insurer revealed that it has written to four million of its customers since it first uncovered the problems – thought to be linked to the merger of the then Norwich Union and CGU businesses – back in 2007.

Since then it has set aside a compensation fund and has already paid out £163m to around 390,000 customers, around 2.5pc of its UK customer base, and half the total numbers thought to be affected by the errors. It is expecting to contact a further 390,000 customers, likely to take the total paid out to more than £300m.

The errors are related to its Life business, based predominantly in York, and not its Norwich-based general insurance division, and cover a range of products from personal pension plans, workplace pensions, life insurance cover and savings. They range from incorrect tax rates being used on pension plans to problems with how savings had been invested.

Customers who think they could be caught up in the blunders were told to sit tight as the firm said it would get in touch.

And Aviva insisted it had strengthened its processes and controls to prevent any reoccurrence.

A spokesman said: “At Aviva we believe in doing the right thing for our customers. We regret that these historical mistakes were made. If any error has been made we will put it right.

“We are working through any outstanding cases systematically and are making good progress. Any customers who may be affected can be confident we will contact them. We found the issues, we are fixing them and we are putting them right.”

shares

0 comments

Most Read

Featured Pages

Most Commented

Overcast

Overcast

max temp: 15°C

min temp: 11°C

Listen to the latest weather forecast

Digital Edition

cover

Enjoy the EDP
digital edition

Subscribe

Broads Outdoor Festival

cover

Enjoy the Broads
Outdoor Festival
digital edition

Read

Eating Out in the Broads

cover

Enjoy the Eating Out
in the Broads
digital edition

Read

Great Days Out

cover

Enjoy the Great Days
Out digital edition

Read

Get Into Summer

cover

Enjoy the Get Into
Summer digital edition

Read