Aviva Section 32 Buyout Policy (CAS-61480-S5S2)

Ombudsman’s Determination

Outcome

The complaint is upheld against Aviva because it failed in its duty of care in negligence to deal with Mr N’s case before he died. It took too long to provide information to Mr N for him to have made an informed choice regarding his options before he died.

Aviva shall:-

1. Calculate the actuarial value of the spouse’s pension. 
2. Deduct this value and the lump sum payment already made to Mrs N from the sum which would have been paid out under the SIHLS. 
3. Pay the residual amount to the Estate together with simple interest at the base rate quoted by the Bank of England, applicable from the date the SIHLS would have been payable to Mr N (16 July 2020) to the date of actual payment.
4. Pay £1,000 to the Estate in respect of the serious distress and inconvenience caused to Mr N before his death. 

Complaint summary

Mrs N, as the executor of the Estate, has complained that Aviva mishandled Mr N's application for a serious ill health lump sum (SIHLS). She considered that Mr N incurred a significant financial loss because he was not granted SIHLS due to delays by Aviva.