Three former senior managers of the Norwich Union life insurance group have taken a case to the Employment Appeals Tribunal claiming they were unfairly targeted for a redundancy package.

The three men accepted redundancy payments totalling more than £300,000 from Norwich Union in 1993 following a rationalisation of its life and pensions business.

The case began yesterday despite arguments by Norwich Union that the redundancy payments should be repaid before any action could proceed.

Giving evidence at the tribunal yesterday, the Norwich Union chief executive, Mr Vincent Sheridan, said that, while the decision came as a "shock" to the regional managers, it was necessary for the group to reduce its operations in this way to remain viable.