My complaint to the FOS about life insurance

White_Knight

First of all like all of us I’m sorry to hear of your loss.

Your my first blog ever, so I’ll cut to the chase, if you really want to know how to look after yourself, look up an e-book called:

HOW TO BATTER COMBATIVE INSURERS by Reynold Gordon.

Then you’ll know how and where to ask the right questions.

And don’t be taken in by the dates promoted on the FOS‘!
Your case could be around for a while :cool:

Nic-nacs

:rotfl::T:beer:

UPDATE!!!!!.......
I received a letter from the FOS this morning! Complaint upheld on the fact that we weren't advised of the consequences on cancelling the 1st policy, they have recommended that the insurer reinstate the 1st policy, and payout in full :beer:

clear_blu

A pleasing result and correct in my opinion.

dunstonh

Good news and seems like a logical outcome based on what you said.

Thorpe

Let me say that I am happy that you are going to get the money, am sure it will make a big difference to you and your family.

I personally feel that when you partern took out a 2nd policy and decided not to mention a HUGE factor of her medical details then that is the customers fault and nobody else.

Whilst the adviser should of made you a bit more aware of the implications of cancelling the first plan, a good adviser wouldnt cancel the first plan unless the 2nd plan was in force, if the 2nd plan was in force with a higher amount of protection for a reasonable cost then the adviser has really done a good job.

He wasnt aware of the medical disclosure and if he was i have no doubt that he wouldnt of recommended the new product.

Nic-nacs

Hi everyone,

I was given a month the accept/decline the ombudsmans decision, received 15/09/2012.
I've had an offer from the insurer. They've offered to pay out in full, which is over the £100k ombudsman limit. It took them 3 weeks to respond to the ombudsmans final decision. So i had an extension to make my decision to accept/decline the ombudsmans decision until 31/10. They've only agreed to pay interest at 1.5% instead of the 8% recommended by the ombudsman. I've gone back to them asking them to reconsider their offer at 8%. It does make a difference of £20k. They promised to have a response to this today. After not receiving one I emailed them to be told they're not in a position to respond yet and will have one soon....5 weeks on now from the ombudsmans final decision.
I've a week to go and feel that they are playing games now, what do I do? If I took this to court where would I stand? I'm very aware that a court wouldn't see things in the same way as the ombudsman.
Any replies very much appreciated!
Got an email from the ombudsman this morning, and there isn't anything they can do to help.

Nic-nacs

Can anyone help? Should the ombudsman be helping with the settlement amount?

dunstonh

Nic-nacs wrote: »

Can anyone help? Should the ombudsman be helping with the settlement amount?

I think the problem is going to be that it is above the FOS limit. If the insurer wanted to play hardball then they could stop at the limit. You are getting more. The FOS has no remit to get them to pay more than they already are.

Depends on whether you want to play poker with the insurer in court as well as perhaps being held up for months or even closer to a year or more as well as potentially incurring costs).

Nic-nacs

I'm not so sure I want to take the court route. As I know there are risks involved. It's just they're not playing fair, and nobody is there to help. The promised to give me a final offer last week and haven't done so.
I contacted the FSA for advise, and they said that the ombudsman should be helping me, they say they shouldn't be. The ombudsman who dealt with my complaint is not in the office until Tuesday. I thought they may be willing to give the insurer a quick email to see what the delay is, but they don't seem to be willing to do that.

magpiecottage

The problem you face is that the insurer is only required to pay up to the limit at the time you complained to FOS - £100,000 then although for claims it received from the start of 2012 it is £150,000.

It has exercised its discretion to pay more and has done so on the basis of interest at 1% above Base Rate.

If you go to court, then all bets are off. You cannot accept the Ombudsman's decision AND go to court.

The Court could then decide, as others have indicated, that the non-disclosure was the real cause of the loss and make no award.

So I think it may be best to quit while you are ahead.