MBNA Questioning Insurance Claim

Spleensmrs

Hi,

My father in law passed away in October and he had an MBNA credit card for which he was paying payment protection or insurance of £9.20 a month. When we contacted them they told us not to worry as there was insurance in place to cover the balance of £1300. They requested a copy of the death certificate which we sent and on Monday of this week we get a letter from the insurance people stating they are requesting his GP notes and hospital notes and until they see these they will not do anything about the outstanding amount. What happens if they decide they won't cover the debt are we liable for this?
Its really concerning us and is there criteria that he would of had to of met regarding his health for payment protection on a credit card?
Any advice to help us understand the small print that may of been on the payment protection plan would be gratefully received as we can't find anything in his personal statements other than the fact he was paying this insurance monthly as it quite clearly shows on his MBNA statements.
Thanks

Eydon

I guess what they are trying to establish is if your father had any medical conditions at the time he took out the insurance, that he didn't tell them about.

Do you know when the PPI was taken out?

lisyloo

Its really concerning us and is there criteria that he would of had to of met regarding his health for payment protection on a credit card?

Sorry to hear of your loss.
Generally when you take out insurance related to health, there are questions that you need to answer.
If he answered all those questions honestly and told them of any pre-existing condtions then there should be nothing to worry out.
This might just be normal checking procedures.

If he blatantly answered a question incorrectly (like told them he didn't had a heart condition when he did) then this is deliberate non-disclosure and they would be entitled to refuse the claim.

If on the other there was something not mentioned, because either he didn't know about it (can happen if it's related to health of someone else e.g. a family member) or because they never asked a relevant question, then that's called inadvertant non-disclosure and there are rules regarding this.
I can't tell you exactly what those rules are but they treat people different if they didn't know soemthing or weren't asked rather than they blatantly lied (which I'm sure won't be the case).

I know it's difficult, but try not to worry.
It could be something on the certificate has caused them to chek if there has been a previous diagnosis on the other hand it could be a completely random check.

Spleensmrs

The PPI was taken out at the same time the credit card and he's been paying it since the very first statement. We have just heard that they have received the GP and hospital notes and we will hear for definite either way in a week to 10 days. If they turn round and say no though does that then mean we have to pay it or as we have now received the funeral plan payment will it be taken from that as I suppose thats classed as his estate?
I find all this very confusing sorry if I sound a bit dense but we have never had to deal with anything like this before.
Thanks again

Eydon

It would need to be settled from his estate by the executors - you are not directly liable for his debt.

Provided he didn't have any pre-existing medical conditions at the time of taking on the insurance that he failed to declare, you shouldn't have a problem.