‘Scottish Widows sent my dad’s life insurance policy to my estranged nephew’

A woman who had been caring for her late father, a former Royal Marine commando, has given up her fight with Scottish Widows after the company sent her father’s £10,000 life insurance payout to her estranged nephew. The daughter had been living with her father in Cyprus, ensuring his care until his passing in April 2019. Before his death, her father requested Scottish Widows transfer his life insurance policy to her for safety reasons, a request the company initially acknowledged. However, after her father’s death, it was discovered that the payout, along with two other accounts amounting to £37,000, was sent to her nephew, who was still the power of attorney.

The problem stemmed from a discrepancy between the deed of assignment and the power of attorney, causing the life insurance transfer to become invalid. Alan Lakey, a financial adviser, explained that financial transactions before death must involve the power of attorney, potentially nullifying the assignment the daughter believed had been completed. The daughter filed complaints with Scottish Widows and escalated the matter to the Financial Ombudsman Service, which later refused to take on the case, citing jurisdiction issues. Frustrated, the daughter expressed her disappointment in how Scottish Widows handled the matter, considering her long-standing relationship with Lloyds Bank, which owns the insurance company.

This case reflects a broader issue, with complaints against Scottish Widows rising significantly. The daughter discovered a Facebook group dedicated to complaints about the company, connecting with others who experienced similar frustrations. Campaigners, including Mark Radin, have been advocating for changes, as complaints about the company surged by 63% last year. Scottish Widows responded by saying they had made efforts to address customer service issues, including training and staff reallocation, but the company could not comment on the specific case due to the legal complexities involved.