ASU insurance - had it for 5 years and now they're being taken over

DanMac_2

I have had ASU for my mortgage since buying my house just over 5 years ago. The company this was with has sold on this business to a new provider and i recently received the proposal for the continuation of the policy under the new provider's terms.

Looking through the small print gave me a predictable answer to my suspicions that i would get fleeced. The policy i had would have paid me out after 30 days of continuous unemployment and back date it to the 1st day. The new policy would have a start date of February this year instead of 5 yrs previous which would make me fall foul of various exceptions in their wording. On top of this, at work we have just been told we are going on a 4 day working week due to lack of business (engineering sector!). So i guess i could also fall foul of the "if you should reasonably have known that unemployment was a possibility" exception.

I'm gutted about this as i saw it as a safety net worth investing in to give me time to find a proper job if the worst happened. my question is, "is this legal?". In taking over the policies of the previous provider am i not entitled to at least the same level of cover as before?

The policy as worded is not worth paying into, and i doubt that i can transfer to any other policy without similar exceptions preventing decent cover for the first few months at least.

Should i be writing to any autorities about this?

Oscar_The_Grouch

Hi there

I think your first action should be to contact the company concerned and raise your objections with them. It may be that they have already considered this and would treat your policy more as a "renewal" than a "new policy", avoiding all the terms you are concerned about.

If you get no joy that way, raise a complaint under their complaints procedure - they will have the details of how to do this in the policy booklet they have sent you.

If you are still unhappy with the outcome, you can then refer the matter to the Financial Ombudsman Service.

As I say, it may be something they have considered already, so speak to them nicely - the person on the end of the phone is not the one that has taken over a company, they are just an employee so be nice!!

Make sure that you note the times that you call, the number you are calling from (making sure you are not withholding your telephone number) and get the name of the person you speak to. This will enable them to trace the call at a later date if they need to. Ask for everything to be confirmed in writing.

dunstonh

Are you sure they are enforcing that rule. It may only apply to new policies and not those being transferred over.

I cannot see how a company providing continuation of cover, albeit under a new brand, can enforce a new client deferment period to existing clients.