PPI INSURANCE BENEFIT cancelled early

george99_2

I am having a dispute with this company over my PPI insurance claim. I have submitted this into this category as someone with consumer rights might be able to assist, it is also in the PPI section thank you.

I was made redundant in October 2007 I made a claim which was accepted, I had to wait for my first payment after a 60 days elimination period. The maximum benefit period I was told was 720 days. First payment was made 10th December 2007
I became ill with depression in August 2008, so I rang to advise them of the change in my circumstances, I was told not to worry there would be no elimination period imposed and that the 'new' claim would replace the original claim and be classed as a continuation of the original claim, subject to the same terms and conditions.
This was the clause
"Claims that occur within 6 months of a previous claim will be treated as a continuation of the original claim and will be subject to the maximum benefit payable"
My benefit was stopped in August 2009 I am still unwell but they claim they can only pay for 12 months if you go sick whilst unemployed. This is in the policy but I'm unhappy they never told me and actually they had told me the policy would run under the T&C of the original claim back in August 2008 i.e. 720 days.
I asked for a full explanation of the so called "continuation" rule.
None was forthcoming I was getting fobbed off big style with garbage, anyway I suggested a scenario , if I had been unemployed for 700 days and then reported my illness I would have expected the claim to be 20 days taking in consideration the above rule, the perplexed Barclays representative had to put me on hold for 5 minutes before returning to say 'Yes we would have paid you for 12 months', I replied , "Well, once again can you explain the relavance of "continuation clause" , I was told it would be referred to an assessor to adjudicate.
As I lost the benefit I could no longer pay the premium, when I missed one payment a letter dropped through my door the next day to say the policy was cancelled, no words like 'Sorry we have not received your payment if you would like to correct this situation by making payment etc etc'.
I have worked since leaving school in 1970 until 2007 apart from 2 years in college during a career change.
Am I wrong to question this? Have I understood the rules correctly?