Am I able to claim for miss sold Income Protection?

Last post Mon, Sep 17 2012, 11:27 PM by oldeliza. 2 replies.
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  •  Mon, Sep 17 2012, 11:27 PM

    Re: Am I able to claim for miss sold Income Protection?

    It depends.

    A true Income Protection Plan (IPP) is usually a very different beast to Payment Protection Insurance (PPI). Exterminator has replied as if you were missold a PPI policy, and if it is one of these then their comments are very valid. If it is an Income Protection Plan, then proving misselling is not as straightforward, as a number of the scenarios listed may not apply.

    An Income Protection Plan is also frequently known as Permanent Health Insurance, and is not usually sold as an add on to a loan or credit agreement. Income Protection is designed to replace your income if you are unable to work due to illness or an accident, not just cover the repayments on a loan. Someone who is employed in gainful employment is, in many ways, precisely the type of person for whom Income Protection is designed, as the benefit level should be fixed with reference to your salary so that it covers not just mortgage and other loan payments, but your household bills and provide you with spending money on top. The deferred period on an Income Protection Plan is commonly longer than a PPI policy - 3 or 6 months is common - and is usually fixed to take into account any period that you will still be paid your full or a major part of your salary by your employer and could manage with savings. The period over which benefit could be paid is also much longer, typically up to age 60 or 65.

    This is not to say that Income Protection Plans cannot be missold. You may have always been in an occupation with very generous sick pay provision such as longer serving public sector, or suffer from a medical condition that would normally preclude a valid claim - the vast majority of claims for Income Protection Plans are musculo-skeletal (e.g. bad backs) and stress.

    It is important that any misselling claim you do submit is sent to the correct company, which should be the company that sold the policy, which in the case of Income Protection Plans is not often the provider of the policy as this has to be an insurance company.

    • Post Points: 5
  •  Wed, Sep 12 2012, 1:28 PM

    Re: Am I able to claim for miss sold Income Protection?

    Yes, providing there was no refund of fees made to you when you cancelled that policy, then they are still obliged to consider a misseling claim in exactly the same respect as any other claim. What counts is the fact you were mis-sold when you got the policy, not whether you still have the product or that the policy is still in force.

    If you wish to claim write a letter to the relevant company identifying yourself and your policy and send it by recorded delivery stating which of the misselling ground(s) you consider applied to you (some basic examples below in the non-exhaustive list). Simply ask in your letter for a return of all the premiums and any associated interest. If after eight weeks no satisfactory reply is provided then you can forward the matter as a complaint to the financial ombudsman at the FOS.

    The protection would never have benefitted you or paid out to cover your needs.

    They failed to make it clear that the policy was optional or tell you about any cooling off period.

    They implied or stated it would be more expensive if you didn't take the insurance.

    They implied or insisted you take out their policy to qualify for any product or help with your application.

    They were very pushy when selling the product, making you feel as if you could not say no.

    They would not let you continue with the application if you did not sign the insurance agreement as well.

    *Or for any other pertinent misselling reason applicable to your case, which may not appear on the list above.

    • Post Points: 5
  •  Tue, Sep 11 2012, 10:53 PM

    Am I able to claim for miss sold Income Protection?


    Over a year ago I cancelled an Income Protection Plan that had been running for over 7 years.
    I have always had gainful employment and am currently full time employed. Am I able to claim for miss sold Income Protection?
    If yes how?

    Many Thanks
    • Post Points: 35