Aviva to compensate life insurance customers

Thu, 13 Feb 2014

Insurance giant Aviva is set to pay compensation to more than 500,000 customers, following historical errors.

The Aviva Life business, which is predominantly based in York, has confirmed it is writing to its clients as part of a "product governance programme".

It has already paid out ú163 million to nearly 400,000 customers.

The insurer said it expects to compensate a further 390,000 people. The cost isálikely to top ú300 million and funding has been reserved to cover subsequent payments.

Aviva would not confirm what the historical errors were. However, they are believed to be in relation to incorrect tax rates being used on pension plans andáproblems with how savings had been invested.

The insurer said it had strengthened its processes and controls to prevent this from happening again.

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."

He added that any customers who may be affected could be confident that they would beácontacted.

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