Delta Lloyd to settle on rip-off policies
Delta Lloyd is the first company to agree to compensate investors who have lost money on loan-shark policies.11 September 2008
THE NETHERLANDS -- Insurance company Delta Lloyd became the first company on Wednesday to agree to compensate investors who have lost money on what have become known as loan-shark policies.
About 300,000 investors who were charged exorbitant administration costs on investment-insurance policies for years will be compensated and will cost Delta Lloyd about EUR 300 million.
Over the years, about 6.5 million investment-insurance policies have been sold. In 2006, the Financial Markets Authority published criticism of the enormous costs being charged.
Delta Lloyd was not the only company to sell the rip-off policies. Finance Minister Wouter Bos is calling on other insurance firms to follow its lead and compensate investors. The banks, Nationale Nederlanden, Rabobank and Fortis are reported to be negotiating collective settlements.
[Radio Netherlands / Expatica]