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Aviva investors plan action over matured policyholder voting rights
Aviva investors are up in arms about the fact some policyholders will not be able to vote in the reattribution process, even though their policies are still active.
Policyholders in the CGNU Life and CULAC funds will be able to choose whether to receive a cash payment in return for giving up their right to receive any possible future payouts from the funds' inherited estates, and have until 21 August to vote either for or against the reattribution. (See related article.)
Eligible with profits policyholders look set to receive between £200 and £1,150 each from Aviva’s inherited estate. (See related article.)
But some policyholders, who are in the midst of receiving voting packs, have now been made aware they will not have the chance to vote and will instead be given an automatic payment for their policies.
Aviva’s 'It’s your choice' booklet explains: "If you had an eligible policy that has matured since 21 November 2006 or a policy that is due to mature before 1 October 2009, you will automatically receive a payment for this policy – you don’t need to vote."
According to John Pilkington, co-founder of the Norwich Union policyholder reattribution action group, as many as 10 per cent of Aviva policyholders may fall into this category and will not have the right to vote.
Posting a comment on the Norwich Union policyholder reattribution forum, one member said: "All matured policy's that qualify ie active 21 November 2006 but matured after this date do not get a vote, only a payment if the reattribution takes place.
"What a shambles is being created by Norwich Union and the policy advocate.
"They are getting away with it, unless there is a legal challenge. It is hard to see any justice taking place as regards to policyholders as a whole."
Another member told FTAdviser.com: "The group will be in the High Court for certain. It is also likely that individuals will present objections to the reattribution in the High Court."
However, Aviva clarified: "Policyholders whose policies matured before Aviva started the mailing process on 1 June 2009 will not receive the pack but will receive the payment.
"Policyholders whose policies matured after 1 June 2009 will receive the mailing pack as Aviva will not know whether they will want to mature their policies."