Clearer rules on endowment claims

Insurers have been told to warn people about time-bars on claims

BBC Radio 4's Money Box was broadcast on Saturday, 29 May, 2004, at 1204 BST.

The programme was repeated on Sunday, 30 May 2004, at 2102 BST.

The Financial Services Authority (FSA) is introducing new guidelines aimed at preventing people who were mis-sold endowment policies losing out on compensation.

At present policy-holders could easily be unaware they only have a fixed period in which to make a claim to the Financial Ombudsman.

But from 1 June, insurers have been told they should spell this out in the projection letters they send to people who face a strong possibility of a shortfall.

Claimants should be told they have three years from the date of that first "red" projection letter to act, and must be given information on how to complain.

Another warning should follow six months before the time-barring is imposed.

As an interim measure, people whose complaints will be time-barred between 1 June and 30 December will be given a two month "extension" to complain.

To discuss the new guidelines and how effective they will be, we were joined by:

Anna Bradley, Consumer Director at the Financial Services Authority

Chris Kenney, Head of Life and Pensions at the Association of British Insurers

Louise Hanson, Head of Campaigns at the Consumers Association

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