Mortgage protection insurance

makemesumdosh

Over 10 years i was sold an insurance policy which would pay me £100 for every £4 premium i paid so i signed up for £400 of cover. the policy covered accident, sickness and unemployment and would pay out after 60 days for a max of 12 months.
i beleive i was mis sold as i work for the NHS and would of been entitled to 6 months full sick pay plus 6 months half pay plus SSP for the 6 months on half pay so very little drop in income. as for being made redundant, it rarely happens in the field i work in (no one i know made redundant in last 24 years.)
just remortgaged and bank went through my finance and said i didn't need this policy so have cancelled.
the companys name has changed since i took the policy out but new company Aviva has wrote to me saying policy has been cancelled. do i have grounds to claim ?
any advice welcome.

magpiecottage

Who sold you the policy?

And exactly when?

taly_70uk

I have a very similar situation as makeme.
My Financial advisor told me i needed this insurance to cover sickness, critical illness, unemployment in 2005 for my mortgage.
I recently visited another financial advisor who said i didnt need that at all, i am a civil servant so its all covered and has been since 2000.
Please can anyone advise if if i go back to my original financial advisor or scottish provident who the insurance is with.

Any help would be appreciated.

Thanks

dunstonh

. as for being made redundant, it rarely happens in the field i work in

NHS is making lots redundant in our area.

do i have grounds to claim ?

On face value you may have scope due to 6 months full pay, 6 months half. However, as it was put in place by a mortgage adviser, the date and company you dealt with is key as regulation didnt start until 2005. Some had prior regulatory cover, whilst others didnt. So, you may not be able to complain if it is pre-regulation (hence why magpiecottage is asking for the selling firms name and the date)

My Financial advisor told me i needed this insurance to cover sickness, critical illness, unemployment in 2005 for my mortgage.
I recently visited another financial advisor who said i didnt need that at all, i am a civil servant so its all covered and has been since 2000.
Please can anyone advise if if i go back to my original financial advisor or scottish provident who the insurance is with.

Are you saying that you are never going to suffer a critical illness? Highly unlikely and a complaint would not be upheld on that basis. If the sickness cover is the PHI version then it could very easily be valid and correct as that is designed to fit sickpay. If it is the PPI version then there could be overlap and that part could be grounds for complaint.

Please can anyone advise if if i go back to my original financial advisor or scottish provident who the insurance is with.

You complain to the original adviser. However, you should contact the new one first as they have to now what the policy covers you for before they recommend cancellation. At the moment, you appear to have several segments under one policy (which is normal for Scot Prov). Yet only one segment "may" be an issue but Scot Prov offer both PHI and PPI versions of income protection. Your new adviser will know what it was.

makemesumdosh

i was sold the policy through the mortgage advice bureau. the policy was called protect direct and a GA policy.
it was taken out in dec 1994.

dunstonh

makemesumdosh wrote: »

i was sold the policy through the mortgage advice bureau. the policy was called protect direct and a GA policy.
it was taken out in dec 1994.

Ok. That is pre-regulation. So, you have one potential barrier to complaint. I will let magpiecottage find out their regulatory status as I havent got the hang with insurance (i know the investment side inside out and know that and that my own status is that pre 2005 wouldnt be covered on my cases)

magpiecottage

A December 1994 policy is almost certainly outside FOS jurisdiction. It is possible that GA might consider a complaint about a Permanent Health Insurance policy if it was sold by a representative of GA but, as DunstonH says, this would probably have been matched to your sick pay entitlement.

If it was PPI then the adviser would probably be deemed independent and neither the lender nor the insurer would be responsible.

In such a case, FOS would not be able to intervene and if you attempted to take the adviser to court they could use Section 14B of the Limitation Act 1980 to timebar your claim against them.

gandalf010

I was watching this thread with interest, as I too took out MPPI via the Mortgage Advice Bureau, in Dundee, subsequently Mortgage Advice Bureaux Scotland - seems that there were a number of such bureaux, all under MAB, and registered c/o Sinclair Wood, 90 Mitchell Street, Glasgow.

They were all dissolved or re-designated between 1995 and 1997, with the final incarnation seeming to have dissolved in 2001. The directors named in the various versions were Iain and Morag Mack.

Like "makeme", or maybe not, MAB arranged MPPI through Premier Writers, who, acording to the schedule, were acting as the agent of Wessex Insurance Co Ltd. Premier Writers now claim that they simply administer on behalf of insurers.

The following year my policy was transferred to AFLAC, based at the same address as Wessex, and somewhere in between, Norwich Union were mentioned, before the policy was re-assigned, in 2009, to Cassidy Davis, a Lloyds syndicate.

I wrote to Premier Writers, who deny having sold me the policy, and claim that they have no recollection of who did, yet they must have a file containing a Direct Debit mandate dated October 1992, which allowed them to take money out of my bank account, but apparently no indication of who proposed us to them. I'm not clear on who actually sold the ploicy.

I note that the FSA apparently have a view that sound practice, where companies subscribed to ABI codes of conduct prior to regulation, should have prevailed, which suggests that they consider retrospective claims to have some validity.

However, with so many insurers, and the original brokers no longer in existence, it looks like a bit of a lost cause, unless anyone has a bright idea.

dunstonh

Premier Writers now claim that they simply administer on behalf of insurers.

That is correct. I can use them for certain things but it doesnt mean they are liable for anything I do.

I wrote to Premier Writers, who deny having sold me the policy, and claim that they have no recollection of who did, yet they must have a file containing a Direct Debit mandate dated October 1992, which allowed them to take money out of my bank account, but apparently no indication of who proposed us to them. I'm not clear on who actually sold the ploicy.

As regulation didnt start until 2005, there is no reason for them to hold on to old data. Typically 6 years from the end date is the norm.

gandalf010

dunstonh wrote: »

Typically 6 years from the end date is the norm.

I only cancelled last year. Does that mean they should still have the papers?

dunstonh

gandalf010 wrote: »

I only cancelled last year. Does that mean they should still have the papers?

Possibly. However, remember that it is the advising firm that holds the bulk of the documentation. Not Premier. As Premier have no liability for the advice given, they dont need to hold on or see paperwork that has no impact on them.

as the advising firm have gone and it was taken out pre-regulation then its game over.