Mortgage Protection Insurance Discussion

hakan01

Hi Everyone,

I am new to the moneysavingexperts.com posts but hopefully I have the correct forum to get the answer to the following question. I made a complaint about MPPI through Abbey (paymentcare). The claim was in reference to MPPI back in 2001 when we had our first mortgage.

I got a letter today offering a refund which I believe is not proportionate to what we paid at the time. The offer consist of

£1353.84 total premiums paid between July 2001 and May 2003
£987.93 Interest on the above amount to 30-June-2011 at 8%
Total payment £2341.77

We had the policy from July 2001 to around September 2004 paying £50.41 per month.

I am unsure as to how Abbey/Santander calculated the refund but should I accept this offer or have I got grounds to claim more?

Thanks in advance for any help and advise.

cia98jld

Hello from a newbie!

I tried to apply for ASU cover from I:Protect which is mentioned in the article, however for some reason the underwriters are not accepting me. I have asked why and they have not given me a reason:

"With reference to your email below, unfortunately the Insurer does not inform us of a specific reason for their decision, certain criteria such as the occupation or industry that the applicant is in, whether employment in that industry/occupation has been more affected by current market conditions (e.g. whether there are/have been significant changes in that market such as downturn in actual business, downsizing etc) can be major factors when accepting or rejecting an application.

The Insurer’s decision is in no way a reflection upon yourself (and we would confirm that no credit checks are undertaken) but merely the fact that in the current economic climate they have found it necessary to adopt more stringent underwriting criteria and as we have advised earlier this can differ between insurers so you may well find another online alternative will accept you without any problems.

We are sorry we are not able to provide this insurance to you at this time but should remain unhappy with this response you have the option to refer your concerns to the Insurer of this scheme, AmTrust International Underwriters Ltd, by writing to them at 40 Westland Row, Dublin 2, Ireland"

I cannot understand why as I have been in the job for approx 10 years, ok the industry I am in is going through a tough time currently, but aren't they all at the moment? I'm in the peak of health and don't smoke. I didn't ask for the full amount of cover allowed (as I don't need it).

Anyone else had any experience in this?

111_S

Some MPPI providers have a list of firms and industries where they will not accept any applications from employee's working in those firms and sectors.

This helps reduce risk and protect those already insured from premium rises. Some insurance companies will take on the risk as they don't reject any applications as they rely on your declarations in the application.

Using those insurance companies does put you in a position where significant premium increases could be imposed as claims start to increase as they are basically taking on the higher risk business.

cia98jld

111_S wrote: »

Some MPPI providers have a list of firms and industries where they will not accept any applications from employee's working in those firms and sectors.

This helps reduce risk and protect those already insured from premium rises. Some insurance companies will take on the risk as they don't reject any applications as they rely on your declarations in the application.

Using those insurance companies does put you in a position where significant premium increases could be imposed as claims start to increase as they are basically taking on the higher risk business.

I appreciate that, but the quote itself asked for the industry that I worked in and then produced the quote... so if that was the case and they were not accepting that particular industry it should not have offered me the quote?

I would suggest that MSE considers to remove this company from their report when they are unable to answer a straight forward question about their own processes. Smells of not treating the customer fairly to me.

GSXRCarlos

Obviously there's a cost difference between MPPI and Income/Lifestyle protection.

But what would people recommend, Mortgage cover at circa £10 per month (based on £500 payout) or Income/Lifestyle cover at circa £35 per month (based on a payout of £1100) i have no savings to speak of and a few debts (£5000 to my parents)

I assume that income protection would be better, but need help deciding

Thanks

frak123

Hello,

I am single with no dependents, although I may start a family in the next 2 years.

I hav ben paying £50 per month to Aviva for a life insurance policy on my mortgage, which over the 4.5 years works out to be a large amount of money !

I used a mortgage broker through the estate agent when I bought my house, and they persuaded me that I should take the policy.

Firstly, would I be able to claim compensation for mis-sold PPI on this insurance ?

Secondly, if I cancelled the policy now, would all this amount I have already been lost ? Or could I claim it back from Aviva ?

(I am not convinced such a policy is worthwhile...)

Thanks for your advice,

Simon

dunstonh

frak123 wrote: »

Hello,

I am single with no dependents, although I may start a family in the next 2 years.

I hav ben paying £50 per month to Aviva for a life insurance policy on my mortgage, which over the 4.5 years works out to be a large amount of money !

I used a mortgage broker through the estate agent when I bought my house, and they persuaded me that I should take the policy.

Firstly, would I be able to claim compensation for mis-sold PPI on this insurance ?

Secondly, if I cancelled the policy now, would all this amount I have already been lost ? Or could I claim it back from Aviva ?

(I am not convinced such a policy is worthwhile...)

Thanks for your advice,

Simon

answered on your duplicate thread.

https://forums.moneysavingexpert.com/discussion/3777937

mrbilbs

Hi All

Just a quick question. Having been made redundant in Jan 2011 I got a temp job in May 2011 and was made permanent last month in 2012.

I didnt have MPI and vowed to get it once I got a new job. The problem I have is that its a big global company and unknown to anyone - no announcements etc there has been 3 redundancies last month from a dept that has no bearing on my role and further redundancies at a UK site at a different location just down the road.

My dilemma is do I bother applying for insurance?

Would I need to disclose this?

ACG

different insurers have different criteria but its usually if you are not aware of any future redundancies and nothing has been announced then you should be ok to get cover.

Dowutchalike

I was sold mortgage insurance by the halifax in 2003- It wasn't clear that this was being included within my monthly payment at first, and it was only later that I realised it wasn't mandatory to have and cancelled it.

Am I entitled to claim back the monies taken for the insurance that, if I had have properly understood it, I wouldn't have taken out as I didn't need it?