Lloyds Banking Group has indicated that it might confiscate bonus allotted to former Chief Executive Eric Daniels over rising bill of the insurance scandal.

The bank's board pay committee is expected to meet during the next few days in order to consider if a share-based award to Daniels in 2010 must be pulled back. Lloyds Banking Group has said that it is planning to increase provision for the mis-selling of payment protection insurance (PPI) by another £1.8 billion. The increase will take the total provisions by the bank to £10 billion for the issue. Lloyds had to set aside £750 million for mis-selling payment protection insurance that had taken the total to £8 billion and affected its profitability. Now the total amount stands at £10 billion.

Experts say that the mis-seling of PPIs is become the worst scandal of its type ever. There are allegations that the banks pushed worthless insurance products on customers to increase their earnings while making the customers pay for insurance that they did not need.

Daniels, who stepped down from Lloyds in 2011, is currently a senior adviser with buyout group CVC Capital Partners. Lloyds Banking Group did not comment on the issue of bonus yet.