CIS Insurance, 15 Year Policy Matured, can they do this!!

[groovycaz]

My Employee has had a ploicy with the CIS which she paid £20 monthly for 15 years, last week she recieved a cheque for £4,600 which the letter stated was the maturity value, This was quite a shock to her believing she was going to recieve a tidy sum after the broker who sold her the policy quoted she could expect to recieve around £13k, ive helped her send a Subject Access Request to the CIS requesting all the figures of how they came to the maturity figure and all the information of how they managed her fund, I understand that out of her monthly premium some was towards life insurance but with no yearly statements or any information about how her fund was working since the outset she is completely in the dark, Ive had a look at her policy and its actualy an endowment policy, would anyone know if its normal practice for insurance companies to simply send you a letter with a cheque at maturity date, without any correspondence throughout the period and expect you to accept the figure you are given, even without any schedule showing how your fund was invested...Gc

[Trojan1401]

For an investment of £3600 over the 15 years I would not expect anywhere near a return of £13k. Investments in this type of policy have not realised as much as probably initially projected but on this investment from 15 years ago, CIS projections would be pretty accurate & would not've expected more than £5k.
This would've been issued on standard forms & probably had 3 projections as was allowed under previous rules.
Subject Access Request will show how much was invested & costs of operating plan (which would be minimal for this type of policy ).
Unless she has anything documented from broker of maturity value, I doubt she will be able to get any compenation.
On a positoive note, at least she made a return on her investment which without going throu a complex calc, I would guess the return is more than if £20 PM was put in a BS.