Life assurance policy badly mishandled

A COUPLE in their late 60s were paying €780 a month for substantial life assurance cover

A COUPLE in their late 60s were paying €780 a month for substantial life assurance cover. In 2006, their insurer told them the premium would rise to €2,000 a month. The couple were upset and sought the return of €60,000 in premiums paid since 1999. The company acknowledged it had made mistakes but said it would not return the premiums.

The ombudsman's investigation uncovered a series of errors in the handling of the policy which, he said, caused great inconvenience for the couple.

He ordered the firm to pay €50,000 in compensation and to review its files. The company discovered it had failed to carry out reviews of 1,800 whole-of-life policies.