Endowment agony is mounting

LEADING insurers are adding to customers' mortgage misery by imposing time bars on endowment complaints. Standard Life last week controversially decided to impose a time limit on grievances about mis-selling.

It also admitted it will not honour in full a 'promise' to 600,000 homebuyers to make good endowment shortfalls.

Insurers have paid a total £1bn compensation to mis-selling victims and want to draw a line under their liabilities.

The Financial Services Authority allows companies to time-bar complaints, provided they give customers at least six months' notice. The watchdog has no sanction against companies which rip up mortgage 'promises'.

Standard Life's move heightened speculation that rival Aviva, owner of Norwich Union, will take its axe to a similar mortgage promise covering 800,000 policyholders.

It has already slapped a time-bar on complaints but says it has no plans to alter its mortgage pledge.

Royal & SunAlliance, which sold its closed life funds to Resolution Life, also operates a time bar when it sees fit. Prudential, which owns Scottish Amicable, says it has no plans to impose a time limit.

Customers with endowments maturing now are suffering typical shortfalls of between £350 and £1,400. These plans include boom years for shares, so losses could rise in future.