The Government has announced that payouts to Equitable Life policyholders will begin next month.
The statement was made yesterday and matches the Financial Secretary’s target to start making payments by the middle of 2011.
Policyholders have been told that they do not have to do anything and will be contacted if they are eligible for a payout, with priority to be given to elderly policyholders and the estates of those who have passed away.
“I am setting out the design of the Equitable Life Payment Scheme for Parliament, policyholders and all other interested parties to see,” Mark Hoban, Financial Secretary, said.
“This is a complex issue, but the Scheme has been designed to reflect the principles of fairness, transparency and simplicity.
“When payments start in the middle of this year it will be a huge milestone for the policyholders who have waited so many years for the resolution of this matter.”
A total of £1.5 billion has been set aside to payout, with £1 billion ring fenced to be paid out in the next three years.
As had previously been indicated, with-profits policyholders will be paid out in full for any losses they incurred, with payments not affected by tax.
Policyholders that suffered losses of £10 or less have been told they will not be compensated.
