Is this worth making a claim

silkyuk9

Ok, when we first got a mortgare some 14 years ago we paid an insurance policy so if we were made redundant, or died or were on the sick our mortgare would be paid for a length of time.

A colleague has told me recently that the insurance is no good as we work for NHS so if we were on sick we would not get a penny from insurance as we get sick pay anyway from the moment we were off, full pay for 6 months and half pay for a further 6 months.

if we were made redundant its unlikey we would get insurance as we have worked there for 20 years and OH 13 so we would get a good lump sum so again insurance would not pay.

When we took out the mortgage we told the company that we worked for NHS, obviously to get mortgage, but still told us it was a good idea to pay £40 a month for the insuance.

We have cancelled the policy some 4 or 5 years ago anyway to save money but is it worth persueing a claim???

If so we would have to go through the no win no fee route as we cant afford legal costs anyway. So we would need suggestions of who other MSE members have used to persue insurance payment claims.

What do you think.

di3004

Hi there

Hopefully dunstonh will be along soon to give some help on this one for you, good luck.;)

Premier_2

It would depend on the terms of the insurance.

You may have got paid out if you were ill and unabvle to work even if you were paid full sick pay by your employer. e.g. full sick pay by an employer is typically at base rate and doesn't include any overtime payments you may rreceive.

Similarly, if you were made redundant, the insurance may still pay out despite you receiving a lump sum redundancy payment ( I don't know any PPI that is means tested and doesn't pay out if you have above a certain amount of savings)

I don't know about payment in the event of death. Usually this is covered by separate life cover not ongoing PPI payments. You may want to double check this cover.


If after checking everything, you feel you really were mis-sold the PPI, then you don't need a no win, no fees company. The MSE guide to reclaiming PPI tells you excatly how to do it yourself, usually for the price of a couple of stamps at most.

If you do need to go to court, then chances are it would be held in small claims anyway, so you vcan easily do that yourself too. Note in small claims, legal costs are not usually awarded, hence why I would not suggest paying a solicitor yourself. There are some solicitors that will offer a free 1/2 hour to discuss amtter - that is usually enough to confirm or otherwise whether you have a valid claim. If so, the solicitor would usually advise you to do it yourself anyway as they know legal fees are not usually recoverable in small claims.

silkyuk9

you might be right about the death, i think we have a critical cover for that, that covered death or illnesses that you could not return to work.

roonaldo

it may well depend on if the insurance sale was advised or not. if non advised, then its up to borrower to check if suitable.

dunstonh

A colleague has told me recently that the insurance is no good as we work for NHS so if we were on sick we would not get a penny from insurance as we get sick pay anyway from the moment we were off, full pay for 6 months and half pay for a further 6 months.

That could be an incorrect assumption. If the PPI is paid directly to the lender then it would still pay out even if you are on full sick pay for 6 months. If it is paid to your bank account, then it would not pay out for the first 6 months as it would exceed the limits.

As it was taken out 14 years ago and cancelled around 4-5 years ago then chances of a successful complaint are unlikely. You would be looking at rules and regs of 14 years ago (virtually none) and data protection rules would allow them to destroy the paperwork that existed. Having MPPI if you work the NHS is not a mis-sale. That is one of those myths. Most of the older types from that era did pay direct to mortgage (especially if it was taken out with the same lender). So, complaining it would not have paid out when it would have done is not going to give you any success.

Also, redundancy cover would have paid out as well.

If it had been a more recent case, you may have a stronger argument. I think with one that old and the reasons you have given, the chances of success are slim.