Hibernian refunds stamp duty

Hibernian Insurance has issued refunds to 4,800 life assurance customers incorrectly charged stamp duty on their policies.

Stamp duty on life policies was abolished in 2001. However, not all of Hibernian's IT systems were adjusted to reflect this.

Some 4,000 existing customers and 800 customers whose policies have since matured have been refunded the overcharged amount plus interest.

In most cases, the amount refunded was less than €100.

Separately, Hibernian is continuing to issue letters and refunds to around 3,000 motor insurance and 3,800 home insurance customers, who were charged the wrong claims excess.

The claims excess is the amount customers must pay toward each claim, and is deducted by insurers from the claims settlement cheque.

Some customers who made claims were overcharged and some were undercharged as a result of a systems error.

The mistake was discovered over a year ago and Hibernian began writing to customers in 2004, adding 5 per cent interest. Most motor customers were refunded earlier this year. However, some household customers received letters just last week.

The majority of motor insurance customers were overcharged by about €15. The company will not be seeking payment from customers undercharged.

A spokeswoman for Hibernian, which insures one in four drivers and one in three homes, said in both cases the proportion of customers affected was less than 1 per cent. The company settles 90,000 motor claims every year.

The insurer has informed the financial regulator of the errors.