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MSE News: £60m refund for mortgage protection hike victims

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  • dunstonh
    dunstonh Posts: 116,830 Forumite
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    The policies are for unemployment, sickness etc and (hopefully) pay for up to one year. As a self-employed person, I do not pay for the unemployment cover as I would never qualify for it because I would be excluded from the state benefit that is needed to claim on this part. No problem so far. However, the increase was made because of increasing unemployment.

    Self employed are covered for unemployment under MPPI plans.
    It's still not clear, in spite of several queries on my part, what would have to happen for me to be able to make a claim on this.

    You would have to cease paying class 2 NI and be signed on.
    I am considering ditching it and topping up my PHI with the money. The PHI is fixed pemium and fixed benefit if I wish it to be that way. Each year they write to inform me of the proposed increase in premium and potential benefit and I have the right to say no to both.

    PHI is far superior to PPI.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Paulgonnabedebtfree
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    dunstonh wrote: »
    Self employed are covered for unemployment under MPPI plans.

    Are you certain of this? My understanding is that you need to be in receipt of unemployment benefit (currently JSA) to get anything from the policy for this. As I have only been paying self-employed contributions for many years, I believe that the state would only pay some kind of means tested income support rather than JSA.

    Are you referring to what was called "non-employed" rather than "unemployed"?
    Either way, I am starting to view this product as wasteful because it would need something pretty drastic to happen for all my customers to cancel and for no new ones to be around to replace them. This is because I sell a relatively small ticket service (window cleaning) and, although nothing is recession-free, without being complacent about things, this type of work seems to be more resilient than most during the bad times.
    Also, the risk of accident is vastly reduced for me as my ladder work is minimal due to me using more up to date equipment.
    I feel a PHI top-up coming on subject to checking out the finer details ;)
  • dunstonh
    dunstonh Posts: 116,830 Forumite
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    Are you certain of this?

    Yes. Most MPPI plans cover self employed. The requirements to qualify are harder but they do cover it. There is bound to be the odd plan that doesnt but all the ones I have available to me do.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • startech
    startech Posts: 59 Forumite
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    davemoon wrote: »
    I have just read this news about the MPPI refunds and have got to say I am really pleased that the relevant bodies have stepped in as I was furious with my provider. I was with Assurant for around £20 a month which rose to £48 in June 2009. However they changed provider and its now through Adminicle. Can anyone say whether this will make any difference or should I still be entitled to a refund. When it changed over I didnt have to sign any new policies or anything and they just changed over automatically if that makes any difference.
    Many thanks for your help if anyone can help.

    Role on a refund which will buy nappies for my newborn!!!!!!

    You wouldn't have changed providers as Adminicle does not offer insurance, they are the payment administrator for Assurant. You should contact Assurant to see whether they are going to refund the premium increases.
  • marshallka
    marshallka Posts: 14,585 Forumite
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    Just done an email to request our rises in premiums back for our Income Protection insurance. They can only say no I suppose.:D
  • danm
    danm Posts: 541 Forumite
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    is this strickly only for increases that took place in 2009? My premiums almost doubled towards the end of 2008 on the back of economic environment.

    surely 2008 increases are the same as 2009 increases...?
  • davemoon
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    Brilliant. Thanks for that info as I wasnt aware of it. I will let you know how i get on just in case it helps anyone else. Thanks again. You all do a great job !
  • Lovingitifitsabargain
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    we changed mortgage providers in 2008 so would we have to claim against the previous provider or would they automatically send us the money ? (if we are entitled to any that is)
  • marshallka
    marshallka Posts: 14,585 Forumite
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    we changed mortgage providers in 2008 so would we have to claim against the previous provider or would they automatically send us the money ? (if we are entitled to any that is)
    It might be worth getting in touch with them to ask about it. It cannot do any harm I would not think.
  • mrapps
    mrapps Posts: 13 Forumite
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    davemoon wrote: »
    I have just read this news about the MPPI refunds and have got to say I am really pleased that the relevant bodies have stepped in as I was furious with my provider. I was with Assurant for around £20 a month which rose to £48 in June 2009. However they changed provider and its now through Adminicle. Can anyone say whether this will make any difference or should I still be entitled to a refund. When it changed over I didnt have to sign any new policies or anything and they just changed over automatically if that makes any difference.
    Many thanks for your help if anyone can help.

    Role on a refund which will buy nappies for my newborn!!!!!!

    I'll be keeping an eye on this one too as I'm in EXACTLY the same boat as you, with the same people.. and I'd almost considered cancelling. Not going to now though.
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