Was I mis-sold income protection insurance?

Originalmonkeyboy · 30 June 2010 at 6:42PM

Hi all. Not sure if this has been mentioned before, but I wonder if anyone can help me... I took out an income protection policy about 7 years ago- nothing to do with a mortgage, I just was concerned about how my bills would be paid etc if I was unable to work due to sickness/injury etc.

Anyway, I was assured by the agent that sold me the policy that I'd be entitled to claim for the amount of cover that I paid for monthly up to a maximum of £1500, which, as I could afford it, I opted for.

I never received a copy of the T & Cs (although the documents I was sent did outline some of the conditions of my cover)- which the agent (who I met in person) said they would send to me, but never did, and having just checked them on the company's website, apparently I'm not entitled to the amount that I have being paying a premium for (£1500), but merely a percentage of my gross monthly salary.

If I had been told this by the agent at the time, I wouldn't have taken the cover out, or at the very least, I would only have opted for a monthly premium forthe the amount that I would be entitled to under any claim I may make- which would have cost me half the money I was/am paying...

My question is this; was I mis sold this policy in the first place? If I was, what can I do about it, and if I wasn't am I legally entitled to ask to be refunded the extra monthly premium that I paid, when they wouldn't the full amount I was paying for in the first place?

Sorry for the essay, but i need to be clear on everything!

WombleSW20_2 · 1 July 2010 at 12:42PM

Try requesting a copy of the policy that should have been sent to you at the time of purchasing the cover. It may well be different to the current version you found on their website as much as changed on policy design over the last 7 years.

Having read the policy, if you are still unable to claim the full benefit then try requesting a refund.The sale wasn't covered undmer ICOB / FSA control but worth pressing for a refund anyway.

dunstonh · 1 July 2010 at 1:04PM

apparently I'm not entitled to the amount that I have being paying a premium for (£1500), but merely a percentage of my gross monthly salary.

That is correct. The Govt will not allow you to insure yourself so you are better off ill than working. Although you can get close due to tax/NI differences.

My question is this; was I mis sold this policy in the first place?

Sort of. The policy wasnt mis-sold as you had a need, you wanted it and you got it. The sum insured is wrong though and you do have grounds for complaint there.

If I was, what can I do about it, and if I wasn't am I legally entitled to ask to be refunded the extra monthly premium that I paid, when they wouldn't the full amount I was paying for in the first place?

Complain to the agent that sold the plan and provide proof of your income in the year it was taken out.

Depending on the status of the agent at time of sale, you may or may not have a lot of consumer protection.

Was I mis-sold income protection insurance?

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