PPI - Payment in Lieu of Notice

chrisobo

hi all,

I'm thinking of taking out PPi just incase of unemployment. Looking at the small print, it says that it will start paying out after my 'Payment in Lieu of Notice' expires. What is this 'Payment in Lieu of Notice'? Does this mean that if I ever get made redundant (as I dont think I'll ever get sacked or walk out of the job) and get a small pay-off, this will this be classed as the 'Payment in Lieu of Notice'. If it is, it's not really worth taking one out just for unemployment as you would hope to have found another job (whatever it may be) with a couple of months...

cheers all

Astaroth

To answer the original question.... my contract states that I have a 6 month notice period.

If my employers made me redundant they would have to give me 6 months notice (these things work both ways) however they may not have anything for me to do for the next 6 months and want to be nice (unlikely but I can dream) and so rather than making me sit in the office doing nothing or putting me out on garden leave they can terminate my contract from today but just pay me the 6 months pay in lieu of me working the notice.

What the PPI is saying is if this happens then the PPI wouldnt actually kick in until after the 6 months which is my normal notice period and for which I have received salary even though my contract has been terminated today.

It is only talking about this salary and not your redundency pay.

regularsaver1

Be careful when checking income protection though - this can be confused with Permenant Health Insurance (PHI) which is more accident and sickness and does not always cover unemployment

consider if you need all 3 things to find right policy for you

oh and you say one would hope to find job in a few months .. my dad is highly skilled in his job, but so are others in the industry, and now he is old (sorry dad) it took him months and months to find a new job after being made redudant and even then it was contracting rather than permanent

chrisobo

Thanks for the welcome and the replies guys. They'll get you on any little technicality these days!

Astaroth

To be honest, I think that is a little unfair statement if it is about the "in lieu of notice". Whilst you may be technically unemployed you are still receiving full salary for the next X months (what ever your notice period is) and they will pay the claim in full from the date of the end of your notice period - you are not losing out financially and it is no different to either if you are put on garden leave or actually work your notice other than you are free to seek alternative employment to start as soon as you want rather than having to wait til the end of the notice period.

It is also somewhat of a vicious circle.... in a recent survey somewhere in the region of 85% of people said they thought it was acceptable to commit insurance fraud (eg inflate a claim, lie about circumstances, make up a ficticious claim etc) is this a result of "technicalities" or have technicalities had to be introduced to try and prevent the fraud?