Bonus cut by 45% in 5 years

Dear Mr Tan
I had insured three 5-year policies taken with X since 2004. They reduced the bonus in April 2009 and reduced the maturity proceeds for my three policies by a substantial sum of $ 12,751 (projected yield at maturity reduced from 2.81% reduced to 1.59%). The maturity returns was cut by almost 45% over the 5-year period.

My appeal case was reviewed twice by X but they were unable to offer the higher maturity values. X stated that the bonus revision is within the policy contract and only the non-guaranteed portion is adjusted.

The poor returns affect my retirement saving. I would like to seek your advice - should I put forward my case to FIDReC for a third partly iassessment in order to get a fairy satisfactory returns.

REPLY
FIDREC is likely to side with X, so there is no point in asking them to adjudicate.

It is unfair for X to cut the bonus by so much, especially as the stockmarket has recovered substantially from since April. I suggest that you write to the newspapers and make a complaint.