Life Insurance - Unfair Contract Terms & Conditions

arjaffer

I wonder if someone has come across this problem

1. I took out a whole life/accidental death policy in 2000 paying in about £8.59 pm
2. Benefits of £25000 on natural death or £500,000 on accidental death from motor car accident or public transport accident.
3. Recently Insurance company changed terms and conditions such that I have become ineligible to claim on this policy
4. Original policy had no eligibility requirements. New policy conditions state I need to be in the UK for 7 months in the year to be eligible.
5. The problem is that I am now retired, have a holiday home abroad and spend more than 7 months outside the uk. I have a uk home and pay uk taxes. I am still a uk resident
6. Original policy has clause giving insurance company rights to vary the t & c of the policy
7. Complained to the insurance company and the Ombudsman who has ruled in favour of the insurance company

I am considering taking the insurance company to the small claims court on the grounds of "unfair contract terms and conditions" I think it is very unfair that Insurance Companies can "willy
nilly" change their t&c's on long term contracts.

Does anyone think I have a chance, or am I wasting my time?:undecided

paddedjohn

You are wasting your time, find a new policy.

rs65

arjaffer wrote: »

I am considering taking the insurance company to the small claims court on the grounds of "unfair contract terms and conditions"

How much are you claiming for?

oscarward

Do the maths


Take them to court and you may win your premiums since the t&c change, but given it was in the t&c and FOS has ruled against you so very unlikely.
vs cost of going to court including travel back to the UK to fight it.


Your choice.......

arjaffer

rs65 - I am thinking of £25000 because if the policy ran its course that would be the payout.

rs65

arjaffer wrote: »

rs65 - I am thinking of £25000 because if the policy ran its course that would be the payout.

and what's the limit for the small claims court?

dunstonh

1 - did the policy cover you for the period prior to the change?

if yes - then you are not entitled to anything
if no - then you could put in a mis-sale complaint

2 - Are they creating any barriers for you to exit (such as penalties)?

if yes - then the FCA don't like that (although its life assurance and there wont be any)
if no - then there is no problem

3 - Did you buy guaranteed cover or reviewable cover?
if guaranteed, then terms dont change
if re-viewable then they can do (typically at certain anniversary points)

Complained to the insurance company and the Ombudsman who has ruled in favour of the insurance company

The FOS is more consumer biased than a court. A court will consider the opinion of the FOS in the case as it is the independent arbiter of complaints and a knowledgeable authority.

In the FOS response to you, it would tell you why your complaint was rejected (as would the response from the insurer). Going to the courts will see the same point raised. So, how would you overcome that point?

Plus, you can't use the small claims court with your objective. So, if you lose, you will have costs. It won't be heard remotely. So, you will attend a UK court (more costs). So, how much are you prepared to lose when the easy option is to buy an alternative policy (if you even need one).

jonesMUFCforever

If this policy is so important to you then change your lifestyle to stay in UK for the time period now stated in the policy?

safestored4

You state in your initial post that you are a UK resident with a holiday home abroad. However, is this an accurate description of your situation?

You now appear to be living abroard for most of the year with occasional visits back to the UK. The insurance company only wish to provide cover to people whose primary residence is in the UK. Unless you can show that they do not have the contractual right to do this you will be wasting your time, and money, in the small claims court.

arjaffer

rs65 - The small claims court claim limit is £100,000 I understand.

dunstonh

arjaffer wrote: »

rs65 - The small claims court claim limit is £100,000 I understand.

You mean £10,000