Life Assurance - Was I mis-sold

brydlesmansteve

Hi guys,

I want your opinion about something.

Here are the facts:

In April I took out a loan through my local RBS. In branch they asked me if I wanted to take life assurance out to cover the loan if the worst happened. I accepted.

The advisor was very quiet and I asked what he was doing and he advised that he was filling in the application for me. He read no medical questions to me, he just presented me with the declaration to sign. I advised him that some of the answers to the medical questions were incorrect as I suffer from a mental illness to which they wanted to know if I suffered from. They also wanted to know if I regularly see my GP or hospital specialist as an outpatient to which he answered no to.

I advised him of the mistake to which he said that it could not be amended as he had printed it out but if I signed the form he would "sort it out". If the Insurance Company had any questions they will be in touch.

3 months later I decided to consolidate my partners loan with mine so we went to the same RBS branch to extend the loan.

Again we were asked about life assurance and again I said yes. Again in the meeting there was quiet!!! I saw what the advisor was doing and I told him to stop as I needed to be asked the medical questions and give the correct responses. Although this wouldnt have happened if I hadnt of spotted what he was doing.

The insurance company took me through an extended application which involved them contacting my GP and specialist. In the end my application for life assurance was rejected on health grounds.

The next day I received a letter from the life assurance company about my initial application! Advising they have a report from my GP which would indicate that some of the medical information I gave in the initial application was false. The policy would not have been given to me if they had known the true circumstances. The policy has been cancelled as if I was never covered and my premiums have been refunded.

I made a complaint to RBS which they say has been investigated and they feel they do not need to compensate me as the policy has been rejected due to health grounds and not by the non-disclosure of material facts.

I feel this is a cop-out and am now in a position that I can not take out insurance in my name now as I have had cover cancelled due to non-disclosure.

Can I sue?
Do I have a case?
Was I even mis-sold?
Did RBS act correctly?

Please help as I really could do with the advice.

dunstonh

Can I sue?

No (well, yes you can but it would be a waste of time and I would expect any solicitor to put you off as you have no case).

Do I have a case?

No.

Was I even mis-sold?

Yes. However, the bank/insurer corrected the error and you are not financially worse off. Indeed, you are probably a little better off as premiums were returned.

Did RBS act correctly?

Yes. Their sales rep didnt but they have corrected that and the complaint will be logged against that sales rep now and there could be other actions taken (but thats internal).

You are not financially worse off because of their actions and therefore not entitled to anything. As they could not insure you in the first place they have no requirement to offer you insurance now.

brydlesmansteve

Thank you very much for your advice.

I have one point - As I am unable to take any form of insurance out because of the mistake isnt that being made worse off?

dunstonh

I have one point - As I am unable to take any form of insurance out because of the mistake isnt that being made worse off?

The mistake is not stopping you take out insurance. Your medical condition is.

brydlesmansteve

chronic depression

brydlesmansteve

the bank were aware of my medical condition as i disclosed it to them and asked them to put a note on my account as at times my condition is so severe that at times I cannot monitor my finances properly.

grogdog

also, even though he filled the forms in without you answering the questions, the insurance company should have sent you out details of questions answered to which you would have had the opportunity to correct any mistakes.

brydlesmansteve

They sent me out a policy document but I was under the impression that the guy in the bank had corrected his error.

As I said in my original post, he told me to sign it and he would "sort it out" with the insurance company.