income protection insurance claim

Newly_retired

Am posting on behalf of a friend who has been made redundant. He took out insurance cover for income of £1500 per month, though his f/t job paid more than that. Now he's been told the insurance is unlikely to pay out, because he has a p/t job of 16 hrs so isn't classed as unemployed. He had both jobs when he took out the policy last autumn. Second job was to make ends meet, but now his income is £400 pm.
If they don't pay ( his claim is still being processed) does this sound like a case of mis-selling? If so, what sort of refund/pay-out is he likely to get?

dunstonh

If they don't pay ( his claim is still being processed) does this sound like a case of mis-selling?

Possibly but not guaranteed. If it was sold under advice then it could be a mis-sale unless he told the adviser that the second job was temporary or if he was taking it out to cover full unemployment.

If it was bought without advice then its his own responsibility to check he is eligible.

If he bought it under advice he would have been issued with a report stating his demands and needs and any major risk factors appropriate to him. If it covers that in the report then it is unlikely to be a mis-sale.

Newly_retired

Thanks. It was bought through an advisor. I'll ask him about a report. All he told me was that he made it quite clear to the advisor that he had two jobs and wanted to be covered for the main one where he earned around £1600 per month. In the small print of the policy it does say a claimant needs to show he is unemployed. The catch is that 16 hrs pw job doesnot count as unemployed.