Mortgage protection claim delay - why and what can I do?

DiamondJoe

I took out mortgage protection insurance a few months ago - an I:protect plan with Wessex Group. I was made redundant on 6th April, and I made the claim the next day. My policy states the waiting period is 30 days and the initial exclusion period is 60 days (both of which I'm outside of). They requested all the usual bumf (redundancy letter, p60, evidence of job seeking etc) but I've now had a letter saying that they have appointed someone called RPS associates to come and interview me "in respect of my claim".

Apparently I need to allow 2 hours for the interview and supply bank statements, wage slips, p45 etc (most of which they've already got). The issue is that they say they can't see me until 10th June, which will mean that I will miss May's mortgage payment as the insurance wont have kicked in.

Can they do this? Isn't the whole point of getting insurance to make sure you don't miss a payment? Rather than a 30 day period, that will make it nearly 70 days before they even make the decision. Is there anything I can do about this?

dunstonh

Can they do this?

Yes.

Your claim is only just after taking it out so it has the potential to "smell bad" to them. They are just investigating it before they make their decision

Rather than a 30 day period, that will make it nearly 70 days before they even make the decision.

It is backdated though if they agree to the claim. So, you dont lose the money.

DiamondJoe

Yes but it means I'm not covered for May's mortgage payment. As it happens I can dig in to my savings to cover it, but isn't a 70 day wait as opposed to 30 days as stated in the policy a breach of the policy terms in some way?

pedro123456

Diamondjoe …………………..

Sorry to hear about your job loss, it’s unfortunate and although no comfort a “sign of the times” the Mortgage Protection Policy that you took out apparently has a 30 days “waiting period”, this 30 day waiting period I presume form part of your Terms & Conditions.

So, first things first these T&C are not in place for clarity (saying ok if you are laid off etc we will sort it 30 days after your redundancy date), no these T&C are there purely and simply for the benefit of the IC, and just because the T&C say, there is a 30 day waiting period you are NOW obviously aware that it will be approx 70 days (if not more) as you have said
Lets hope as part of the T&C’s that the IC do not find another loophole as no doubt the 70 days will escalate into “Extra Time”, this ‘extra time’ wont be in your T&C either, but if extra time suits, the IC will use it, and of course it will be except able and tolerated.

As already stated the IC “smell a rat”, and they are now hunting. And you my friend have become their prey as opposed to their provider, they love the idea of you feeding them money, but they don’t like the idea of playing the game fairly in your time of need.

You ask “can they do it?”

The IC’s have for long enough dominated the policy holder, with little emphasis on “being fair” money is money to them they care not how it is accumulated. They see £ signs all the way to the Bank.

You as a policy holder are governed by the T&C inflicted upon you by your policy, but the IC’s adhere to the T&C if and when it suits.

It about time their obscene power was questioned.

So the answer to your question is YES they can do it, they do often enough and get away with it so why not? Who complains? If someone does complain who listens?.

They do it “just because they can” its nothing to do with rats, cats, dogs or rabbits.
Simply they do it because they are a law unto themselves……….simple as that!!!

Is it moral or legal to use T&C as it suits them, and evade these T&C as it suits them?, it certainly isn’t moral its unfair use of the T&C, is it legal, well I don’t know but it shouldn’t be.

My advice it would be to contact the person that sold you the policy, (with a bit of luck a Insurance broker, good Brokers are lovingly referred to hens teeth, being so rare) a good Broker will be aware of the IC’s loop holes as well (hopefully) and will preempt the intended evasive maneuvers of the IC’s to refute your claim.

Advice - consider consulting a “Claims Advisor” I wish I had done this in the early days, but at that time I didn’t know a decent Claims Advisor, The idea of contacting a claims advisor is that it would help you prepare should things not “pan out” as smoothly as the IC has lead you to believe etc. It’s a bit like having a Indian Scout guide you through the reservation.

You ask “is it a breach of them T&C”, doesn’t matter if the answer is yes or no, what are you or anyone else going to do about it?...nowt, what can you do about it? ….Nowt!....... do you see where this is going?

The saving grace is if it gets sorted it will be back dated and alls well that ends well.

I keep my fingers crossed for you mate and hope this Insurance Policy provides what it was supposed to do, and not turn into another worthless piece of paper.

So good luck and keep us informed as to how you get on.

Zorro…….. Defender of the people against the oppressive Insurance Companies, I am not Zorro…………………….…. Z

dunstonh

Yes but it means I'm not covered for May's mortgage payment. As it happens I can dig in to my savings to cover it, but isn't a 70 day wait as opposed to 30 days as stated in the policy a breach of the policy terms in some way?

Thats what your savings are for. Assuming your claim is agreed, then you just replace the savings with the backpayment.

There is a lot of consumer fraud in this area. So, whilst its a pain, it is understandable that they want to check out the validity of a claim where someone took a policy out and just after the qualifying point they are making a claim.

The insurer cannot mess you around and has a duty to act fairly. However, they are entitled to investigate.

pedro123456

well said dunstonh........good job he has some saving isn't it?, lets hope the claim is agreed, fingers crossed.
and yes the IC has a duty to act fairly, and that they shouldn't mess him about.........but 'should not' doesn't mean the same as 'will not'.

On a down side if the claim is not agreed...you have just given your saving to the IC.

Anyway good luck diamondjoe let us know how you are getting on.

Zorro…….. Defender of the people against the oppressive Insurance Companies, I am not Zorro…………………….…. Z

dunstonh

good job he has some saving isn't it?

Yes. Its good to see that the rainy day fund is doing exactly what it is meant to do.

but 'should not' doesn't mean the same as 'will not'.

In the majority of cases the insurer will do exactly what they are meant to do. However, they still get it wrong at times.

On a down side if the claim is not agreed...you have just given your saving to the IC.

If the insurer dont agree and the OP feels he is in the right, then he instigates the complaint process and if it required, takes it to the FOS who will take an independent view.

The process generally works first time and there is a safety net that catches the majority of times that it doesnt.

pedro123456

"Yes. Its good to see that the rainy day fund is doing exactly what it is meant to do"

ok...lets agree to disagree, I don’t think a man should have to use his saving, to pay insurance policies, IMO from the minute he claims all payments should cease until the claim is resolved. Furthermore he has lost his income due to redundancy and ought to be allowed consider his saving for the more important things in his life………not to pay further funds to the IC……………so we disagree, end of story.

Quote:
On a down side if the claim is not agreed...you have just given your saving to the IC.

If the insurer dont agree and the OP feels he is in the right, then he instigates the complaint process and if it required, takes it to the FOS who will take an independent view.



So, If the claim is not agreed, he can go to the FOS who will take a independent view, possibly 10-12 months would you say?.............in these 10-12 month who pays his premiums?...........how much of his “rainey day fund” would you consider acceptable for him to keep paying to the IC?

If the FOS agrees with the IC will he be refunded the premiums?.......no

Zorro…….. Defender of the people against the oppressive Insurance Companies, I am not Zorro….

dany_2

DiamondJoe wrote: »

Rather than a 30 day period, that will make it nearly 70 days before they even make the decision. Is there anything I can do about this?

DiamondJoe,

Just to clarify, the waiting period is the length of time you have to be consecutively unemployed before you are eligible to claim ... it has no connection to the length of time it will take for an initial decision to be made on your claim.

pedro123456

Thanks dany
My advice would still be consider consulting a Professional Claims Advisor.
They will preempt the intended evasive maneuvers of the IC’s to refute his claim. My guess is they will have a major role to play in the future as, Insurance Companies fences get higher, though policy changes.

Z

DiamondJoe

Thanks very much for all this helpful info - the interview is scheduled for 10th June - do you know what I can expect the guy to ask? They want to see bank statements and p60's, all of which I have, but does anyone know what it will be like, eg do they tend to be aggressive? What kinds of questions will they ask? Will they have contacted my previous employer, and requested any info from them?