Claiming for uncancelled life assurance

Oscar1602

During a review at our high-street bank/building society, it emerged we had 2 life assurance policies for our mortgage. One should have been cancelled after a previous visit when they set up a new one due to a change in mortgage type.

The financial adviser admitted his colleague should have done this and asked us to come back later this week after he has investigated the situation.

We have effectively been paying for 2 life assurance policies through them for 4 years (something we should have picked up on, of course, but didn't!).

Are they obliged to remiburse us the full 4 years worth of overpayment? What about any interest on these payments?

dunstonh

Are they obliged to remiburse us the full 4 years worth of overpayment?

No.

However, typically, if it is clear that it should have been cancelled due to replacement then usually they will refund the premiums. The staff member may also get a rollocking as banks typically do not like their sales reps cancelling existing policies to take out new ones. They are not IFAs and dont have the remit of an IFA (as well as the product range and lower prices). It is not uncommon for them to do it under the radar.

Put a complaint it and whilst you are at it, see a local IFA who will be able to arrange cheaper and better cover. They may also help you with the complaint.

ACG

Were both policies taken out through the same bank, with the same life office?
It may be that they never had authority to cancel the existing policy and thats something you had to do.

Also, the fact that both would have paid out means that you are reliant on the bank (not the insurer) admitting they made a mistake.

I think at some point you have to take some responsibility for this, if it were a month or 2 you could argue it, but 4 years - you should really have noticed.