unemployment insurance - be aware

djellworth

For maybe 10 years or more I had taken out private unemployment insurance cover. For around £2K per month cover for 12 months I was paying around £40 per month. Seemed a good safety net. Last year it went up twice - finally to £130 per month. I wasn't too happy about this but felt I had no choice.

I was made unemployed. I tried to claim on the insurance and was told I had to be claiming unemployment benefit to do so. I had never intended to do this as the nature of my job was such that I was pretty well paid and planned to do either several months intensive searching to get a new job or was considering setting up on my own, taking some time to research and plan the new business, using the £2000 per month to live on whilst I did this. Also I did not want to take cash from the government as I had "looked after myself".

Beware. I had to sign on officially therefore to claim "my" private cover even though I did not want or need any cash. This is not a pleasant experience and I sympathise with anyone who is forced into doing this. The DSS was keen to push me into any type of job (I guess I was clearly fit and capable and why wouldn't I take the first job offered) - at a relatively low pay level - which would not have covered my mortgage, would not have set me up for the future and would not have given me the time to either plan for my business - or hunt for another job. I did not want to claim anything from the government at all - I did not want their cash - I had taken care of myself - I thought (!) - but I had to have the signature and be claiming UB in order to claim my private insurance.

I felt as if the insurance provider (payment shield) was using this as a way to avoid paying me and forcing me into a totally unsuitable job whilst preventing me from getting something more appropriate and financially viable long term. The UB office clearly hated the fact that I wanted to register unemployed officially in order to claim privately but did not want to take any cash from them and treated me with complete disdain.

Anyway, all was well and after 4 months I managed to get another, similar job to before and all is well.

Just wanted to post this to get views as to 1) was I wrong to feel a little p-d off and 2) to let you know that if you are lucky enough to have a well paid job as I was, and was thinking that you had 12 months "safety net" (at £1k, £2k, whatever you have paid for,) - you may not! You will have to sign on and if you refuse to take a (almost any) job offered to you (and this is likely to be say £15K) then you will immediately lose your privately arranged cover for which you are currently paying handsomely. Check the small print...... I feel I have wasted about £7000 in premiums over the years.

I am aware how lucky I am to get another job and indeed to have a well paid job in the first place so please do not see this as a winge.

vax2002

I think if you get away with anything less than suing the insurance company in court you have done well.
Insurance is the worlds oldest scam.

kingstreet

It's not often I find myself on the side of the insurer, but I do here.

I don't see any other measure of establishing someone is "unemployed and actively seeking work" that doesn't leave the system open to abuse.

I realise the OP may be the most honest individual in the world, but there are plenty of people who, given the opportunity, would take their insurance payment and sit around doing nothing for twelve months if they had no compunction or checking procedure placed upon them to seek work.

Unfortunately, insurers have to take the lowest common denominator approach.

If the OP has the documentation from the point of effecting the policy and this was not the clear method of making a claim, he should pursue a complaint against the insurer.

Trentenders

How hard can it be to not be successful in a job interview. It's a waste of everyone's time, but try picking your nose for the whole time you're in there. Play the game...

dunstonh

Beware. I had to sign on officially therefore to claim "my" private cover even though I did not want or need any cash.

That is a logical requirement.

1 - the insurance is not for those that choose not to work
2 - you should sign up as you get your NI paid if you do

This is not a pleasant experience and I sympathise with anyone who is forced into doing this. The DSS was keen to push me into any type of job (I guess I was clearly fit and capable and why wouldn't I take the first job offered) - at a relatively low pay level - which would not have covered my mortgage, would not have set me up for the future and would not have given me the time to either plan for my business - or hunt for another job. I did not want to claim anything from the government at all - I did not want their cash - I had taken care of myself - I thought (!) - but I had to have the signature and be claiming UB in order to claim my private insurance.

You are right. Its an awful experience. I did it many years ago for a couple of months whilst i was setting my business up. The DSS didnt push me towards any job though as I was quite up front with what i was doing and they were happy with that. I didnt need the money and to be honest, it was a pittance. I just did it for the NI.

I felt as if the insurance provider (payment shield) was using this as a way to avoid paying me and forcing me into a totally unsuitable job whilst preventing me from getting something more appropriate and financially viable long term. The UB office clearly hated the fact that I wanted to register unemployed officially in order to claim privately but did not want to take any cash from them and treated me with complete disdain.

Compared to you trying to defraud the insurer by making a claim when you had no intention of working.

hcb42

you are perfectly within your rights to refuse jobs not at prev level for at least 3 months (I think) when claiming JSA. It would be folly to put managing directors applying for checkout jobs...even when the job seeker agreement is reviewed, some common sense should apply.

I dont think it is unfair the insurance company expects you to be actively seeking work to pay you....measured by the job centre. Yes I know their service is terrible, but on the other hand as long as you are doing what is asked of you, it is a straightforward process to sign.

oscarward

i was in this situation 6 years ago, as I was on three months pay in lieue of notice and I had to sign on but not get paid. And the insurance wouldn't pay either.

But all the posts advertised in the job centre relative for my skills (computer sys admin) were peanuts pay which companies had no response from adverts so gave it to the job centre to try and get someone on the cheap.

The whole process of applying for jobs you know you can do standing on your head and being turned down is soul destroying. I suspected because of my age (56) this was the issue.

Luckily I found a job after 3 months which got me started again and I'm still going now.