Is this mis-selling?

LCK73

My elderly parents have been buying separate homeserve emergency insurances for years - separate policies for water pipes, electrics, plumbing and drainage, gas pipes, boiler cover....spent loads over the years. I'm just taking on looking after their finances and am wondering if Homeserve 'should' have been talking to them about a combined policy which was cheaper rather than continuing to take their money for separate policies? Anyone got an informed view on this? Is it my parents fault for being naïve and not looking properly on what was on offer or should they have been advised better as it was 'insurance' cover with the same company??

dunstonh

'm just taking on looking after their finances and am wondering if Homeserve 'should' have been talking to them about a combined policy which was cheaper rather than continuing to take their money for separate policies?

Yes, it should be joint. No point whatsoever having two plans as it is just duplication.

However, whether it is mis-sold or not is a different question. If your parents dont tell each other what they have and independently buy the same product, that does not make it mis-sold.

That said, companies are normally very good when it comes to duplicated cover and I suspect once you raise it with them, they will refund one of them.

LCK73

Thanks for your response, sorry for delayed acknowledgement.

My dad bought all the policies, my mum had nothing to do with it.

He started with one policy in 2005 covering plumbing, drainage only. In 2008 he was diagnosed with terminal illness and I can see a pattern building from there on in. In 2008 he bought an electric cover, in 2009 another type was purchased and so the pattern goes until about 2013 when he had every single policy but by separate payments. He died last year, I took over the finances for my mum and I'm just getting into this detail now....

I'm angry that they look to have blithely sold him policy after policy with no suggestion of there needing to be a review. Its insurance so I thought they were legally bound to advise you on most suitable product. Maybe there is a loophole with this type of insurance and they can do this - buyer beware and all that.

I've got power of attorney now so I'm onto them.

Wish me luck.

Insider101

LCK73 wrote: »

Thanks for your response, sorry for delayed acknowledgement.

My dad bought all the policies, my mum had nothing to do with it.

He started with one policy in 2005 covering plumbing, drainage only. In 2008 he was diagnosed with terminal illness and I can see a pattern building from there on in. In 2008 he bought an electric cover, in 2009 another type was purchased and so the pattern goes until about 2013 when he had every single policy but by separate payments. He died last year, I took over the finances for my mum and I'm just getting into this detail now....

I'm angry that they look to have blithely sold him policy after policy with no suggestion of there needing to be a review. Its insurance so I thought they were legally bound to advise you on most suitable product.

Your anger is totally misdirected I am afraid. You seem to have fundamentally misunderstood what an insurance company does. It is their role to provide insurance cover to those who want it. Just like if you went into a clothes shop and bought a coat, you wouldn't expect them to start looking into whether you had bought one from them before or whether you needed it.

They are not a financial adviser and are not obliged to review his finances. They are a provider of products to those who want them. No more, no less. They are not legally bound, as you have erroneously claimed, to advise you on the most suitable product anymore than your average clothes shop is. Some will provide advice but most insurers sell their products on a non advised basis, I.e. They provide what people ask for, no more, no less.

As Dunstonh said, if you feel the cover was duplicated then you can ask them if they would consider refunding it. But don't go in all guns blazing because you don't appear to have much ammunition.

LCK73

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/insurance/10636522/HomeServe-hit-with-record-31m-mis-selling-fine.html

What's this all about then. They are FCA regulated aren't they?

Genuinely confused about where the line is drawn on 'treating customers fairly' .... Selling multiple single policies when a combined one was available, but not offered, seems unfair to me.

dunstonh

Selling multiple single policies when a combined one was available, but not offered, seems unfair to me.

Did they sell or did your dad buy?

LCK73

I imagine they sent him info on policies in the post or when he was renewing the existing contact they upsold him to an additional policy when the sales person spoke to him, he wouldn't have sought this stuff out as he was quite unwell but he might have read the sales marketing and thought it was a good idea.....I'll never know as he passed on but I do see paperwork in the files with 'marketing, have a look at this policy...'...
I think I just need to contact them and discuss.

Insider101

LCK73 wrote: »

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/insurance/10636522/HomeServe-hit-with-record-31m-mis-selling-fine.html

What's this all about then. They are FCA regulated aren't they?

Genuinely confused about where the line is drawn on 'treating customers fairly' .... Selling multiple single policies when a combined one was available, but not offered, seems unfair to me.

They are, but this does not mean they are obliged to offer advice to customers. If people apply for a policy with them and they sell on a non advised basis, they will set it up and are not obliged to look for other products or endeavour to provide advice on what is best for them. If the policies were all taken separately then the person who dealt with the later applications might not have even known the earlier ones existed. They are also allowed to market further products.

The misselling problem arises when people are misled about what the products cover or what product meet their needs. Alternatively, if they did provide advice and that advice was not in the customer's best interest. Your problem is that as you weren't party to the dealings, you can't really go throwing allegations around about how the sale was or wasn't conducted. However, bearing in mind the circumstances, if you contact them, explain the position and open a dialogue, you may find they are willing to adopt a reasonable position over it. But like I said, don't be too aggressive.

HomeServe_company_representative

Hi LCK73

I’ve read your post and I can understand your concerns now you’re looking after your Mother’s affairs. If you still require any clarification around the cover your Mother has in place we’d be happy to try and assist you.

Please get in touch with the team and we’ll contact you right away. Our contact details can be found on our profile page.

Kind regards

Famena
Here To Help Team
HomeServe