Best Insurance cancels ASU cover

LutherDB
LutherDB Posts: 1 Newbie
in Insurance & life assurance
Had a letter today saying Best Insurnace are cancelling ALL unemployment insurance cover (monthly premiums) because too many people are claiming!
This is despite having held the policy for 7 years and never claiming. And literally on the day I get the letter, I get made redundant!

How can an unemployment insurance be cancelled by the provider because more people are claiming? They take the money when things are working well for them! So much for insurance being in place for piece of mind!

Is there anything I can do?

Comments

  • stator
    stator Posts: 7,441 Forumite
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    What date does the letter give for your insurance ending?
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  • AstroTurtle
    AstroTurtle Posts: 290 Forumite
    LutherDB wrote: »
    Had a letter today saying Best Insurnace are cancelling ALL unemployment insurance cover (monthly premiums) because too many people are claiming!
    This is despite having held the policy for 7 years and never claiming. And literally on the day I get the letter, I get made redundant!

    How can an unemployment insurance be cancelled by the provider because more people are claiming? They take the money when things are working well for them! So much for insurance being in place for piece of mind!

    Is there anything I can do?


    I'm assuming this means that the book of business they hold on that policy is Running at a loss and likely that the underwriters of that scheme are withdrawing from the market.


    They do have other Income Protection policies that aren't being cancelled so it's probably an issue with the Ultimate Insurer and not Best Insurance who are a broker it seems.




    Did the letter state it was cancelled within immediate effect? or does it have 30 days run off
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  • dunstonh
    dunstonh Posts: 116,296 Forumite
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    ASU has no guarantee within the product that prevents the insurer from cancelling it. They are allowed to do this.

    It has happened a fair bit with the smaller players and one of the risks when you buy a product based on premium rather than features. Especially if you go away from the mainstream providers. That doesnt help you now but it is something to be aware of in future and others maybe reading who may consider changing theirs.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • stator
    stator Posts: 7,441 Forumite
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    dunstonh wrote: »
    ASU has no guarantee within the product that prevents the insurer from cancelling it. They are allowed to do this.

    It has happened a fair bit with the smaller players and one of the risks when you buy a product based on premium rather than features. Especially if you go away from the mainstream providers. That doesnt help you now but it is something to be aware of in future and others maybe reading who may consider changing theirs.

    But shouldn't you still be able to make an ongoing claim if it starts before the end of the policy's notice period for termination?
    Changing the world, one sarcastic comment at a time.
  • dunstonh
    dunstonh Posts: 116,296 Forumite
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    stator wrote: »
    But shouldn't you still be able to make an ongoing claim if it starts before the end of the policy's notice period for termination?

    Yes. If the event happens within the period of cover then you are covered.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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