A spokesperson for ReAssure said “We recognise that we have fallen short in the administration of the policy and we are very sorry that Mr Sabin has had such a poor experience, especially at what is already a difficult time for him and his family.
“We are now putting things right by applying the missed premiums to his policy at no cost to him, his cover remains unaffected by our mistakes and we will be writing to Mr Sabin with a full explanation and a sincere apology.
“We will also arrange for an appropriate amount of compensation to be paid to reflect the impact of the errors made.”
Second customer complaint
The second complaint involved Mr H (who wished to remain anonymous), and a maximum income plan he had with ReAssure.
According to Mr H the policy was taken out in 2010 with a monthly premium of £400.
In April 2024, Mr H’s original intention was to make a partial surrender meaning he would distribute £30,000 out of an estimated total value of £137,000.
However, according to Mr H, due to a lack of “co-operation” from ReAssure he decided he no longer wanted to have a policy with the provider and decided to have the policy terminated, with the termination date being June 30.
Mr H told FT Adviser that ReAssure had all the necessary completed and signed documents in its possession by June 28 and so he expected the payments to be made to his four named beneficiaries by July 19 (15 working days).
However, payments were not made until August 5-7 with one of the payments not being received till August 14.
During this time Mr H and his family, who were the beneficiaries, had to continuously call ReAssure and were given a new date the payment would arrive each time.
According to Mr H, the family were passed along to different call centre representatives each time.
At the time FT Adviser were contacted by Mr H, ReAssure had been unable to tell the family why there was a delay in making the payments to the beneficiaries.
The provider was also unable to explain to the family the workings behind the amounts received by each beneficiary.
He said: “ReAssure has made payments without any explanation of how the figures have been determined, which seems to me to be remiss.
“Normally, when a bond is realised and the proceeds are distributed a final valuation would be provided showing the amounts realised for each investment and the date of disposal and a total equal to the aggregate of the four payments of principal made to the four beneficiaries. It seems reasonable to me to demand disclosure of this information.”
A spokesperson for ReAssure said: “We have been in contact with [Mr H] to apologise for the mistakes that we have made and to let him know what we are doing to fix things to make sure he and the beneficiaries do not lose out financially as a result of our errors.
