A processing error which saw up to 64,000 Clerical Medical life policies overcharged has been identified, the firm says.
Discrepancies in the annual management charge (AMC) saw some of the unit-linked policies overcharged by hundreds of pounds.
Clerical Medical says the error is in the process of being corrected and promises no customer will be "out of pocket".
The 64,000 cases affected represents 6% of its 1.1 million policies, Clerical Medical says, with an average of about £2 per month, per policy, and an average across all affected policies of £94.
The firm says a periodic review identified the discrepancies and pledges improved controls and monitoring are now in place.
It says the FSA has been kept fully informed and that independent financial advisers are being briefed.
Rob Devey, Clerical Medical managing director, says: “We apologise to our customers. We made an error in the annual management charge of some life policies. We are
correcting it. No customer will be out of pocket.”
Clerical Medical says all customers with an in-force policy will be written to in December and allocated additional units.
It adds customers with an out-of-force policy will be written to from January and reimbursed.
There are also dedicated helplines to assist financial advisers (0845 602 2452) and customers (0845 603 9918), both open Monday to Friday 8.30am to 6pm.
020 7034 2636
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