Lack of CIC on Endowment

beezbonnet

I have an Endowment taken out in 1993, maturing 2018.
The endowment has performed badly being worth less than iv'e actually paid into it. and will likely reach about 40% of the sum it was supposed to yeild. It does however include life cover and some level of disability cover.
I never made any claim over miss selling when the endowment started to under perform, I do realize stock markets can go down as well as up. I am a little miffed though as stock markets have gone up since 1993.

Now, today I received a letter explaining that my insurance cover is only for death or permanent and total disability. (Permanent and total disability not defined) and that in previous correspondence it may have appeared that my policy included Critical Illness Benefit, which it does not.
Actual wording:
Following recent feedback from some of our customers, we've found that information included on your annual statement about extra benefits is unclear and misleading. We're concerned because some customers thought they were covered for Critical Illness Benefit and this isn't included on your plan.

Now is this something I can/should try and make a claim against.
Does this fit in the same remit as PPI?

kingstreet

Critical illness cover was, in 1993 at least, a fairly rare and new add-on option which had a cost implication for the applicant.

At the time of the sale, you should have been given the option of adding critical illness cover to your policy. You need the paperwork surrounding the sale - copy of the factfind and recommendations, if any exist from that long ago - to see what was discussed.

This is not a PPI situation.

magpiecottage

No it is not the same as the PPI issue.

With PPI, the complaint is that consumers were missold it

You were never sold CI so you cannot have been missold it.

dunstonh

Now is this something I can/should try and make a claim against.

On what basis would you try and make a claim?

Does this fit in the same remit as PPI?

Not even close. The PPI issue is not about having PPI but how it was sold and set up. e.g. single premium added to loan and being charged interest. Or being told if you took it out you stood more chance of getting the loan.

beezbonnet

I just find it a little odd that at this time they should send me a letter appologising for misleading me.
I mean why would they do that, if they were not worried they had done somthing wrong and were seeking to protect them selves.
I was thinking of complaining along the lines of:
Well yes, like your other customers I also believied I had CIC and I am most dismayed that you have now informed me that I have not. I payed off the mortgage the endowment was taken out against some years ago and left this policy running for the Life and CIC cover + any maturity payment.
This policy has consistently underperformed. Why would I have kept the policty running if I had not been under the impression that CIC cover was included.
I think the best thing that you can do in the circumstances is correct my policy to provide the CIC cover for the remaining 8 years. Please do this by means of settlement , to provent me from needing to take further action in this case.

dunstonh

I just find it a little odd that at this time they should send me a letter appologising for misleading me.

They havent. They have sent a letter apologising IF you have misunderstood.

I mean why would they do that, if they were not worried they had done somthing wrong and were seeking to protect them selves.

Not everything a company does it about things they have done wrong. Its possible that they have seen a noticeable volume of people mixing up TI with CI and feel a letter sent out to the rest will reduce that volume (which creates work and unnecessary bad feeling).

This policy has consistently underperformed. Why would I have kept the policty running if I had not been under the impression that CIC cover was included.

That is a hypothetical scenario that anyone could make up. What you thought and what you have are not the responsibility of the company unless they have told you that you have it. A clarification does not mean they have done anything wrong.

I think the best thing that you can do in the circumstances is correct my policy to provide the CIC cover for the remaining 8 years. Please do this by means of settlement , to provent me from needing to take further action in this case.

They cant do that as it would make the endowment non-qualifying and create a potential tax charge. Its a bit of a reach as well as there is no apparent wrong doing. They will have no concerns over your threat to take it further unless the policy document says you have CI cover.

So, have you read your policy schedule and document? If not, I suggest you do before you complain.

Also, if you used an adviser to set the policy up, the insurer has no liability for level of cover you chose to have. The liability is with the adviser. So, you would need to complain to the adviser that you dont have something you thought you did.

beezbonnet

I think the advisor bit is the clincher,

I did use an advisor, I havent kept in touch but I understand the guy filed for bankrupsie when the whole endowment misselling thing kicked off (think late 90's) so what ever happened in my case I guess I have no claim.

dzug1

beezbonnet wrote: »

I am a little miffed though as stock markets have gone up since 1993.

It may well be that the company switched a large part of its investments out of the stock market in 1993 and hasn't switched back