Aviva sends voting packs to 1m with-profits policyholders

Thursday, 04 June 2009 12:00

Aviva has sent out voting packs to one million with-profits policyholders giving details about the reattribution of its inherited estate.

Policyholders have been fighting for the surplus money made from the fund and the insurer has now offered payments to every eligible scheme member - but they will have to give up the right to any future share of the surplus money.

According to the insurer, 90 per cent of payments are expected to be between £200 and £1,150, tax-free, with £200 as the minimum anyone will receive.

If a policyholder accepts the offer, payments will be mailed out from November 2009, Aviva said.

Gary Price, reattribution director for UK Life, Aviva, said: "We believe this offer represents a good deal for our customers.

"It is the opportunity for each individual policyholder to make the decision that is right for them, so we would encourage as many people as possible to vote.

"For policyholders who don't vote this will be classed as a no vote and they will not receive a payment."

Policyholder advocate, Clare Spottiswoode will also be holding 'reattribution roadshows' at ten locations across the UK from mid-June to mid-July, so policyholders can ask questions.

The payout is worth £500 million, half of the £1 billion proposed last July, after the markets fell dramatically and Aviva revalued the fund.

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