Beware: Is this a con / insurance loophole?

avro698

Hi all,

First post, so be nice.

I recently went for a new job, better pay and closer to home. I thought this was a win win situation until I checked my unemployment, accident & sickness insurance.

In the past, I have taken use of unemployment payment protection to cover things such as credit card, mortgage, etc.... It worked and paid off when it was most needed.

Here is a situation where your insurance won't pay out and could cause you major problems......


I was offered a new job, but several things prevented me from taking it.

A major factor for not taking the position, which is the reason I write, was that if I left my current employ and went to the new employ, I was left with no cover (unemployment, accident & sickness) whilst I was progressing through the probationary period. Basically the policy did not cover anything during the probationary period. Effectively, (during the probationary period) the policy is worthless. I think this is a rub. (it could cost you, X times your monthly premium for zero benefit).

I can understand the insurance industry not wanting to provide cover in the following scenario:- if I was unemployed, take any old job, get laid off within the probationary period and then make a claim. It could seem suspicious.

However, what I don't understand is that going from full time employment (policy covered) to another full time position, is that the policy becomes null and void for the duration of the probationary period. This meant I was open to any sort of abuse.

As stated before, there were other reasons for not taking the position, but this did lead me to ask the question:- Am I not covered whilst trying to better myself? - the answer seems to be no.

I cannot afford to take such a big gamble as this. You could argue that employers will not make an offer if they are not sure about the candidate. Yes, I agree, but I have seen first hand, people taken on and then kicked out within the probationary period because the employer "made a mistake".

If this was the situation I'd be left up the creek without a paddle...


The situation remains a remote possibility, but I think it is a question worth asking.

If there are any insurance professionals out there reading this:-
a) what are your thoughts,
b) are there any insurance companies/policies out here that do not take such a draconian view on trying to better yourself.

A.T.B.

avro698

dunstonh

Basically the policy did not cover anything during the probationary period. Effectively, (during the probationary period) the policy is worthless. I think this is a rub

Seems perfectly fair and reasonable for them to exclude it

avro698

dunstonh,

So to charge a monthly premium for a service that they will not provide is fair?

mystic_trev

It's all to do with risk evaluation. Moving from a job where you have certain "rights" to one where you can be dismissed without notice and have few "rights" makes you high risk and that's why Insurers won't cover you. Unfair? Maybe - but that's life I'm afraid.

mystic_trev

Sorry - I should have added that you wouldn't pay further premiums (if you changed employment) as there would be no cover during your Probation period.You'd start paying them again after the probationary period.