Advice needed for PPI that didn't pay off loan for cancer sufferer

NWAD_2

Complicated one but here goes....

Friend has asked me to look at his PPI on a natwest loan

During the loan he was diagnosed with bowel cancer & subsequently operated on. He telephoned the Insurance co to tell them he had cancer diagnosis & had to take involuntary redundancy but they did not pay off the loan (which according to the terms of the loan they should have) but simply made a one off payment of £153.48 for involuntary redundancy.

As he was so poorly he continued paying the loan until it was paid off then rang to complain that he had to pay off the rest of loan with savings as he was off work for over 6 months. They have assumed he is complaining about the PPI being missold & refered him back to his pay out when in fact he was complaining about not being paid out when he had cancer.

Where does he go from here? Should he be attempting to claim back mis sold PPI or make perhaps a Retrospective claim with proof from GP to back it up?

He tried to deal with this by phone & got in a bit of a muddle with questions being fired at him so may well have come across incorrectly as he finds filling in forms/speaking to Insurance companies difficult & they were not very helpful by the sound of it!

Kind Regards

Nearlyold

PPI does not usually pay out a lump sum on a cancer diagnosis. PPI pays a monthly amount during periods of absence from work due to sickness or involuntary redundancy.

Critical Illness cover pays out a lump sum on a cancer diagnosis.

The terms of the loan would not state what would be paid out in the event of illness, cancer etc. This information would be in the insurance policy documents.

Have you seen the policy documents, your friend may have bought PPI as part of a multi segment policy and has read the section on CI cover but does not actually have the CI cover segment.

The possible scenarios are:-

Your friend did not have Critical Illness Cover

Your friend did have Critical Illness Cover but the cancer your friend suffered from did not meet the criteria for a claim to be paid

Your friend did have Critical Illness Cover the cancer should have met the criteria for a claim to be paid but for some reason the claim was unjustly denied.

You need to find out which of these is the case, suggest your friend contact the insurer in your presence so you can take over (with his permission) if he gets in a muddle