Can I claim PPI on mortgage protection?

zico02

We have mortgage protection which we have been paying for 10 yrs, yet I tried to claim on it last yr the company said I had to wait 6 months before I could make a claim due to the fact I had a redundancy payout, I don't remember this being explained at the time of taking out the policy... Can PPI be claimed against Mortgage Protection ?? if so do I go to the company for a claim form ?? any help would be greatly appreciated .. Zico

dunstonh

the company said I had to wait 6 months before I could make a claim due to the fact I had a redundancy payout

That is not correct. Redundancy pay has no impact on MPPI. However, PILON does. Did your package include PILON?

Can PPI be claimed against Mortgage Protection ?

You tried to claim on the PPI. You were rejected. However, as i said above, you should check as it shouldnt have been rejected unless there was PILON.

magpiecottage

dunstonh wrote: »

PILON

Payment In Lieu Of Notice.

An employer may, if it wishes, pay you for your notice period as a lump sum for that period. Although you leave immediately, that payment is one to which you were contractually entitled and therefore you are not legally redundant until the end of the notice period.

Therefore any waiting period for the purposes of a PPI claim would not start until the notice period would have ended.

However, refusing a claim because of a "true" redundancy payment is unusual. If that is the case a complaint to the insurer would seem appropriate.

zico02

Many thanks for this yes I was paid my notice period. Although I was made redundant in April , but told I couldn't claim the protection till October ... I did.t have a notice period of 6 months though . I think 4 months

dunstonh

That explains it then.

Technically, for benefits and insurance, you are not class as unemployed until the end of the PILON period. So, if you had 3 months paid to you, then your contract of employment is effectively 3 months later.