Legal and General has become the latest endowment company to introduce time barring, meaning that customers must claim for compensation within the next 6 months or face losing the chance of having their shortfalls covered.

L&G’s 630,000 endowment customers will be informed of the time limit by letter. If they don’t start the claim process within the period specified, they forfeit the right to claim compensation free of charge through the Financial Ombudsman Service, even when the policies have been clearly mis-sold and the shortfalls run into thousands of pounds.

Customers will still have the option of pursuing a claim through the courts, but private civil actions can be costly and have no guarantee of success.

With other insurers like Standard Life and Scottish Widows having already imposed time bars which are now nearing the deadline, people who think that they may be entitled to compensation are being urged to take action as soon as possible.

Prudential and Nationwide are now the only major endowment policy providers who have not put a time limit on complaints.

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