Strasbourg, 18/01/2006 (Agence Europe) - On Wednesday, Parliament approved the setting up of a committee of enquiry into the “decadence” of the British insurance company “Equitable Life”, as was suggested by the Conference of the Heads of political groups. Comprising 22 MEPs, this committee will investigate alleged violations of Community law and maladministration in the application of Community law over the bankruptcy of the company. More precisely, the committee of enquiry will investigate the way in which British authorities applied the European Directives on life insurance, particularly with regard to application of the rules and monitoring of the financial health of insurance companies. Allegations as to whether or not the British government failed over a number of years in its obligation to protect policy holders and failed to monitor properly “Equitable Life's” financial situation and cover will also have to be investigated. The text explains that an interim report will be put to Parliament within four months following the opening of the enquiry, then a final report will be submitted within twelve months.
It may be recalled that, in 2000, “Equitable Life” was unable to pay out more than 1.5 billion pounds sterling to its policy holders, as ordered by Law Lords. Policy holders suffered heavy losses and considerable reductions in their savings and pensions. The reasons put forward at the time to explain this failure was maladministration and lack of respect for Community law.