Life Insurance - Unfair Contract Terms & Conditions

arjaffer

dunstohn - Many thanks for your detailed reply

The issue here I feel is under the unfair contract terms legislation.

That clause in the original policy document gives them wholesale right to change the t&c of the policy

I consider that as unfair and unreasonable.

I quote this paragraph from the Unfair Terms in Consumer
Contracts Regulations 1999.

What is unfair?
A standard term is unfair if it creates a
significant imbalance in the parties' rights and
obligations under the contract, to the
detriment of the consumer, contrary to the
requirement of good faith.

That is where I am trying to obtain redress.

arjaffer

rs65 - you are right.£10,000

rs65

arjaffer wrote: »

you are right.£10,000

Ok, so small claims isn't an option.


Are you really going to take this to the normal courts, with an FOS decision against you already?

dunstonh

That clause in the original policy document gives them wholesale right to change the t&c of the policy

That is a risk with a reviewable policy. Changes are not possible on a guaranteed policy.

That is where I am trying to obtain redress.

As you cant use the small claims court, you are going to be risking your money on this one. I suggest you seek legal advice on this.

Going after £25k when you are still alive is not going to work either. Your legal adviser will confirm this.

The FOS will consider unfairness. Why did they not agree with you? What makes you think a court will not come to same conclusion.

arjaffer

Thanks for your prompt response

I agree, I will go and get some serious legal advice before I plunge into this.

By the way, I have reported the issue to Competitions Marketing Authority, who will not intervene, but wants consumers to report any unfair marketing practices. Nothing will come of it I guess.

I really feel that for long term (whole life) contracts, insurance companies can use that clause to change the t&c's to their advantage when the risk they have underwritten becomes onerous on their finances is very unfair and unreasonable.

I have contributed over 16 years of premiums during my working life. Now that I have retired, I find myself exposed to this situation as wholly unacceptable.

rs65

arjaffer wrote: »

I agree, I will go and get some serious legal advice before I plunge into this.

Remember the issue isn't just whether it is fair - it's also options if they use the clause.


You are not bound to continue the contract so I don't think you will win.

arjaffer

I took the underwriters to the small claims court for £10000.
They settled out of court for a slightly smaller amount which I accepted.
I think they realised that they were going to fight a losing battle because they have indeed changed the policy to "the detriment of the parties concerned and not in good faith"
Thanks to all who contributed
:beer:

dacouch

arjaffer wrote: »

I took the underwriters to the small claims court for £10000.
They settled out of court for a slightly smaller amount which I accepted.
I think they realised that they were going to fight a losing battle because they have indeed changed the policy to "the detriment of the parties concerned and not in good faith"
Thanks to all who contributed
:beer:

Thanks for updating the thread.

Out of interest, I assume the policy is now finished eg it's paid out and you no longer pay in.

maddogb

yet again another example of how the FOS seem to operate oblivious of the law, something needs done about this...

dunstonh

maddogb wrote: »

yet again another example of how the FOS seem to operate oblivious of the law, something needs done about this...

Nothing the Op suggests that. The settlement was agreed out of court. That does not mean they accept liability. Maybe they decided that it was cheaper to settle.