MPPI Claim

Goodluck1

I was advised to take out a mortage protection plan insurance 11 years ago as I was told should anything happen my mortgage would be covered (this is what I can remember of the conversation 11 years ago). However since beng made redundant and rang up to tell the company this, I was informed the policy did not cover redundancy, only sickness etc. I was not asked at the time of taking out the policy if I had any other cover in place, which I had my previous employer's would have paid me 6 months full pay and 6 months half pay should I have been sick, so there was no need to take out the policy in the first instance and because of what I was told all those years ago I paid the policy with no arrears or defaults and now I want to claim back the money on the mortgage policy they are saying that it was not mis sold to me and that it was not a PPI and are therefore refusing to investigate the matter. I have since written another letter of complaint to them asking them to investigate the matter as I was mis sold that policy giving all the reasons for the e.g. I already had something in place at work which would have covered me should I have been sick e.g. for a year and therefore I would have been covered. The policy was a mortgage protection plan, I say 'was' because I have cancelled it as I was so upset and as it was of no use to me and after many years of paying into it to be told that it does not cover redundancy it did not make any sense to continue paying into it. I want to know can I make a claim for being mis sold MPPI? I am awaiting a second response from the company to see if they will investigate before I take it to the Ombusman. Any advice would be appreciated. Thanks.

dunstonh

I was advised to take out a mortage protection plan insurance 11 years ago as I was told should anything happen my mortgage would be covered (this is what I can remember of the conversation 11 years ago).

There are a number of different types of insurance that can go towards protecting your mortgage. The main ones are life assurance, Critical illness cover, permanent health insurance and MPPI. If you have one but not another then you wont get coverage in the one(s) you dont have.

I was informed the policy did not cover redundancy, only sickness etc. I was not asked at the time of taking out the policy if I had any other cover in place, which I had my previous employer's would have paid me 6 months full pay and 6 months half pay should I have been sick, so there was no need to take out the policy in the first instance

Based on what you say, you do have a need. So, your assumption there is incorrect. Also, the fact you not advised to have a PPI was the correct action. A PHI is the correct option.

now I want to claim back the money on the mortgage policy they are saying that it was not mis sold to me and that it was not a PPI and are therefore refusing to investigate the matter.

Their answer seems logical and correct.

I want to know can I make a claim for being mis sold MPPI?

First of all, you dont have PPI. So, making a complaint about being mis-sold MPPI when you were not sold MPPI is not going to get you far. We need to know what the other insurance is. I suspect it is either PHI or life assurance. If it mentions mortgage in the product name then it is probably life assurance.

If it is life assurance, then your complaints so far have effectively been that you are not going to die so you don't need it. Clearly that is not the case as you are going to die. You just do not know when. If it is PHI then your complaint is that you get 6 months full pay, 6 months half pay so dont need it. However, PHI covers the period from that to the end date (which will typically be close to or at retirement). Your employer doesnt pay you that long. So, again, you do need it.