- Aviva says 50,000 customers may have been overcharged on their premiums
- Customers who took out a policy with Friends Life may be affected
- This applies to life insurance, critical illness and income protection policies
- Those affected are being contacted by Aviva and refunds are being sent
Insurance giant Aviva is refunding around 50,000 customers sums of up to £100 each.
The refund applies to customers who took out insurance policies with Friends Life, which was bought by Aviva in 2015.
An IT problem meant some customers were charged the wrong price for their insurance policies.
Aviva says 50,000 customers may have been overcharged on their insurance premiums
A range of different insurance policies were affected including income protection, life insurance and critical illness.
These were index-linked policies which change with inflation but a computer error meant some customers were overcharged.
Those affected will be contacted by the insurer and refunds will be paid automatically, via cheque or a bank account transfer, depending on how you pay your premiums.
If you think you have been affected and you don’t hear from Aviva it may be worth contacting the insurer to check the payments you made were correct.
An Aviva spokesperson said: ‘As part of an ongoing review of our policies, we’ve found a number of our older-style Friends Life – now Aviva – customers who have indexed-linked life insurance policies have paid higher premiums than they should have done.
‘Around 50,000 customers are affected with the vast majority overcharged by £100 or less. In some cases, it’s a lot less than £100.
Those affected are being contacted by Aviva and refunds are being sent automatically
‘We’re contacting all affected customers to apologise and are committed to ensuring they are not financially disadvantaged as a result.
‘This was caused by an IT system error, which did not accurately reflect all the terms and conditions relating to premiums. Following a meticulous investigation, this has now been fixed.
‘The affected policies are Friends Life – now Aviva – index-linked protection policies which relate to life insurance, critical illness and income protection.’
Customers had reported problems after an IT upgrade at the firm went wrong and others had failed to have the right amount of tax relief added to their contributions.
Aviva’s website lists a host of problems, some of which won’t be fixed until the end of May. These include issues with payments to savers who withdraw income generated by their investments.