A SOLDIER who could die from injuries caused by a Taleban grenade has been paid just £1,400 from his insurance company - after originally being offered £226.

Private Simon Peacock, 22, from Basildon, still has lumps of shrapnel lodged in his heart, lungs, knee and hand which he has been warned could kill him at any time.

He is in constant pain after a rocket propelled grenade exploded in front of him in Afghanistan's notorious Helmand Province on May 4 last year.

The brave young soldier, from the Royal Anglian Regiment, feels deeply let down by his injury insurers Abacus, who have only paid him £1,400 compensation and originally offered £226.

He said: "I think it's insulting. Apparently my injuries don't fall into the right categories for a decent payout, so all I've got is £1,000 for shrapnel wounds and £400 for my time in hospital.

"I even had to fight for that.

"Originally they only offered me £226 and I had to get the commanding officer of the Army rehabilitation centre to sign a note on my behalf to get it increased.

"If I had lost a leg I would have been given over £100,000, yet I have to live with the fact I could die at any time if the shrapnel ever moves from my heart."

Pte Peacock's close friend Private Matthew Woollard, from Southend, received £104,000 from Abacus, after his leg was blown off by a landmine, in Helmand Province, on May 3 last year.

He explained all soldiers are told to take out injury insurance when they sign up.

Abacus is one of the recommended firms.

He said: "I am still paying them £28.23 a month, because I'm scared if I stop there will be no chance of me appealing against the payout.

"My regiment knows all about my case and the Army will hopefully try to get me more money, but they have so many cases to deal with I don't know what is going to happen.

"It is all very disappointing."

Surgeons had to stitch Pte Peacock's vital organs back together after the explosion.

The squaddie, from the Royal Anglian Regiment, has made a remarkable recovery and is now able to walk around. However, there is no chance of him returning to active service and he will probably have to leave the Army.

Pte Peacock is still negotiating a separate compensation settlement with the Ministry of Defence.

Paul Leat, spokesman for the Ministry of Defence, said: "The MoD provides compensation for injuries linked to service through the Armed Forces Compensation Scheme, which provides lump sum payments and regular payments for life for the more seriously injured.

"Commercial personal accident and life cover is voluntary and is additional to the benefits provided by the MoD."

Abacus refused to comment.