Interest onTotal permanent disability claim with Scot Prov

Elliott500

Hi,

Just looking for some advice on a claim I am getting sorted on behalf of a friend.

To give you some background, this friend was a long standing TV news correspondent, who was sent to see the very worst of humanity for his entire career. He came down with PTSD several years ago and has been declared unable to work by his company and personal insurance since. As such he has immense trouble dealing with his problems and enlisted me to help him sort through financial issues. While doing this I came across the fact he was ensured for TPD on own or suited definition with Scottish Provident. They accepted the claim on the basis that his illness caused him to lose track and delay the claim by this amount of time.

We have been pursuing the claim and have recently received the waiver of premium benefit after 6 months and are hoping that the claim will soon follow.

My question is, since this is all being backdated to the time of diagnosis over 5 years ago, and the money owed has been sitting in their account for this all this time, would he be entitled to any interest accrued on both the waiver payments and the final settlement? I can't seem to find any information on whether he would be owed that.

kingstreet

Sorry, has it taken five years to settle the claim or are you saying you've only just claimed because you didn't know you could?

I would say they would pay interest if they have taken five years to settle, but if they've only just had the claim, interest over a period they knew nothing about would be unlikely.

Elliott500

Sorry for being unclear. The claim has only been going on for 6 months. They fully accept that it is due to his illness that he was unable to claim until I helped him - with PTSD comes a huge tendency to avoid things - bills were left to pile up, letters unopened, his finances went unchecked and he almost put himself into ruin by not being able to deal with things.

The assurance would already be void if they felt it wasn't a good enough reason - part of the policy says that claims must be submitted within 6 months of illness or without a valid medical reason they will be rejected straight away.

Admittedly that is not their fault, but I'm just curious as to how things should stand with this.