Misleading Friends Provident Life Insurance Statements

_mk

I have a combined savings / life insurance policy, sold to me by Friends Provident in my early twenties (now turning 40). Quite why FP felt the need to advise a single male student (in his early twenties with no dependants and living with family) the need for a life insurance policy is a separate matter.

In 1997 I suffered a critical illness and in 2003 Friends Provident begin stating my policy included critical illness cover. I contacted them and they confirmed this was the case in writing, but they later changed their position.

I took the matter up with the financial ombudsman in 2005. They investigated and concluded the Friends Provident policy did not include this cover, and part of the settlement (apart from £50) was an undertaking from Friends Provident to accurately communicate my policy details in future.

In every annual communication received from Friends Provident since this time my policy continues to states it includes critical illness cover.

Does the forum know of similar precedents? If so then what might be an appropriate course of action for me to take? Could Friends Provident be made to honour the policy as they continue to describe it to me, or can I expect to achieve at most a further £50 pocket money and for Friends Provident to make a further hollow promise not to continue to mislead this customer?

There comes a point where policies taken out long ago cease to be at the forefront of one’s memory, and a person simply accepts the communications from companies like the one I describe are true and faithful. Where these statements are false the holder is misled to thinking they need not make certain provisions because these are already provided for – i.e. they will find themselves under insured.

Ideas / comments appreciated in advance.

Regards.

dunstonh

Quite why FP felt the need to advise a single male student (in his early twenties with no dependants and living with family) the need for a life insurance policy is a separate matter.

Easy answer to that. 15-20 years ago you didnt have the options available now and endowments were the usual "savings" products of the tied agent. The life assurance element is minimal usually and is part of the overall return.

Does the forum know of similar precedents? If so then what might be an appropriate course of action for me to take? Could Friends Provident be made to honour the policy as they continue to describe it to me, or can I expect to achieve at most a further £50 pocket money and for Friends Provident to make a further hollow promise not to continue to mislead this customer?

Are you saying that no critical illness cover was included at all or was it budget critical illness option where only certain critical illness were included and yours was not of them?

If its not included at all, then you already know that from your previous complaint. So apart from their admin not being updated, you are not losing out financially. Its just their documentation doesnt say what you think it should. Without seeing it, it is hard to know if it is right or wrong but I cant see what you would gain from another complaint that would be any different to before.

_mk

FP were told to ensure future communications were accurate and made an undertaking to do so. They've failed to do so for the last three years. These are important communications and can give people a misleading view of how much cover they have. FP seem to attach very little importance to getting mine right - perhaps many other policy holders are similarly being given incorrect details about their policies. Unless people take them to task they will never change.

Regards.