MPPI or Income Protection??

chrissieanne

Hi,

I wonder if someone can help me with this query on behalf of my son.

He has been self employed since leaving school at 16 in a successful sole tradership as a flooring contractor. He is now 31 years old. He applied for a mortgage through an estate agents in April 2008 who went on to sell him a variety of insurance products through the Countrywide Insurance Services such as, Buildings and Contents, Life Insurance through Friends Life and one called Income protection through Friends Life.

He told the Mortgage advisor he was self employed but she never told him that he could only claim if he permanently ceased self employment. Incidentally, this is not mentioned in the large booklet given to him from Countrywide. The question of him ceasing was never an option as despite sometimes being out of a contract for a month once in a while, he had a contingency in that his wife worked. His wife didn't work when he got the mortgage so the policy is for him alone. She does work now.

He feels that because the advisor did not bring the 'permanent cessation' to his attention at the point of purchase, he has been mis-sold the policy and so do I. He has put in a complaint to Countrywide but is told it is Income protection and does not constitute PPI, so he cannot claim it back. This is what they say:
"The Income Protection Policy through Friends does not meet the definition of PPI and I believe that the confusion could be in relation to the fact that it falls under a Mortgage Protection Plan which is a life assurance product under which a number of benefits are available, Income Protection being one of them"

The adviser also sold a Life insurance (decreasing) policy to him at the same time.

With the publicity surrounding the mis-selling of products, (Endowments and PPI), despite their contention that it doesn't meet the definition of PPI, surely the fact that the adviser left out a major fact would meet the definition of mis-selling and therefore give rise to a successful claim for a refund.

Can anyone please help me with this?

Thanks
Chrissie

dunstonh

He feels that because the advisor did not bring the 'permanent cessation' to his attention at the point of purchase, he has been mis-sold the policy and so do I. He has put in a complaint to Countrywide but is told it is Income protection and does not constitute PPI, so he cannot claim it back.

If it is the product I think it is then its not PPI. It is PHI. Permanent Health Insurance. It has no redundancy cover. PHI is not PPI.

With the publicity surrounding the mis-selling of products, (Endowments and PPI), despite their contention that it doesn't meet the definition of PPI, surely the fact that the adviser left out a major fact would meet the definition of mis-selling and therefore give rise to a successful claim for a refund.

If its not PPI then making a PPi style complaint is pointless. Unlike PPI, endowments only had around a 25% uphold rate. PPI sees a majority of complaints succeed (with loan and credit card). Although most standalone PPI plan complaints fail. However, endowment sales from the 80s and 90s are very different to a PHI sale in 2008.

Can anyone please help me with this?

It is hard to see what your complaint is. You are arguing about a product that you dont have.

haras_nosirrah

Sounds like a good recommendation to me. Life cover to pay off the mortgage so his wife who wasn't on the mortgage wouldn't lose her home if something happened to him and a policy which would pay a monthly payment if he couldn't work due to accident or sickness so they could maintain payments on the mortgage (again wife not working when policy sold so protecting sole income). This policy is not ppi and has no exclusions relating to self employment. The reason the advisor and the booklet didn't say anything about permanent cessation is they don't apply - if you had been sold a redundancy policy then you may have had a point.

Feel sorry for the advisor here as the complaint will go against them personally and can't see they have recommended anything inappropriate here

roonaldo

Whats wrong with this? he was self-employed and was a sold a policy without redundancy cover. Why would an adviser go over "cessation of business" when it doesnt apply? Would you buy travel insurance and expect to be asked questions about what modifications your ford focus has???

You at least need to read up and understand what you are complaining about as none of this is PPI which you have been correctly told by Countrywide.

It seems that certain people and other websites leads people to be in shock that they have insurance.

[Deleted User]

roonaldo wrote: »

It seems that certain people and other websites leads people to be in shock that they have insurance.

Not just in shock, they appear to think they are "owed" a refund because they have had no reason to claim on it.!:eek:

aeu96197

If your son has an income protection policy (IPP/PHI), then I would imagine (as above), any complaint will fail - ultimately, to protect your income is a good idea, if you're self-employed.

If there was any kind of unemployment rider on the policy (i.e. if it included unemployment cover also), then there may (and only may) be cause for complaint.