very old 'income protection policy' - is this PPI?

silversue_2

Hi

When taking a loan many years ago, The Bank Manager said it was a condition that hubby had to take income protection insurance through the bank since we were self-employed. He put us onto the bank's sales chap and it all went ahead.

Is this PPI or should we complain about miss-selling?

Many thanks for any response and advice.

leclerc

silversue wrote: »

Hi

When taking a loan many years ago, The Bank Manager said it was a condition that hubby had to take income protection insurance through the bank since we were self-employed. He put us onto the bank's sales chap and it all went ahead.

Is this PPI or should we complain about miss-selling?

Many thanks for any response and advice.

Yep that's PPI

silversue_2

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http://www.lendingstandardsboard.org.uk/docs/lendingcode.pdf

dunstonh

Income protection could be PPI or it could be PHI.

Is this PPI or should we complain about miss-selling?

We would need more details as a) we dont know if its PPI or pHI and b) you havent given any reason for complaint. So, we cant comment without knowing your complaint reasons.

PPI being referred to as income protection is a relatively new thing. Historically PPI used to be known as ASU and income protection referred only to the PHI version.

PHI is issued by life assurance companies. PPI is issued by General insurance companies. PHI asks a lot of medical questions at the start. PPI doesnt. PHI is especially important for self employed and should not be mistaken for PPI.

If you put a PPI complaint against a PHI policy then you are destined for failure.

silversue_2

Hi dunstonh,

It is called 'income protection policy' and the reason we have to complain is that it was a condition of the loan that he took the policy even though if he was incapacitated and could no longer carry on his occupation, I, being a partner, would continue the occupation.

There is no mention in the policy of PPI or PHI. The payment contributions for the policy were monthly and separate, not included in the loan payments.

In the letter, sent by the bank, informing him of his acceptance for the policy, it is stated as 'permanent health insurance'.

Does any of the above help? I very much appreciate your opinion. Thanks

antrobus

silversue wrote: »

...In the letter, sent by the bank, informing him of his acceptance for the policy, it is stated as 'permanent health insurance'....

Then that's your answer. PHI = permanent health insurance. As in an insurance policy that is supposed to cough up some money if you cannot work because of illness or an accident.

Yuu can still compain about the sale. But there would have to be some reasons for the complaint.

silversue_2

Antrobus, it's PHI even though the policy calls it 'Income Protection Policy'? Sorry for double checking, but just need to be 100% sure. Thanks

dunstonh

In the letter, sent by the bank, informing him of his acceptance for the policy, it is stated as 'permanent health insurance'.

permanent health insurance = PHI. in the "old" days, insurance product names tended to have a generic name and marketing name. Permanent health insurance is the generic name. Income protection is the marketing name. You see it in many areas. e.g. pensions prior to 1988 used to be called Section 226 retirement annuity contracts - Marketing called them pensions. Investment Bonds have the generic name of single premium whole of life assurance (if open ended) or single premium endowment (if fixed term). Investment Bond is match catchier.

So, its not PPI. I didnt think it was because PPI polices referring to themselves as income protection is a relatively recent thing. Mainly due to comparison sites trying to pass off PPI as income protection (PHI) as they prefer to sell PPI as its quicker and more profitable to them than PHI (many of which are still paper applications and its not a standardised cover across providers - each has many differences).

Complaints on PHI are rare and it is regarded as one of the most important insurance policies someone can have. it is medically underwritten at point of sale (unlike PPI). So, there are no difficult exclusions when it comes to claims etc. The FOS had 241,098 PPI complaints in the last published 12 month period. PHI had 1496. PPI had a 66% uphold rate. PHI had a 29% uphold rate. PHI complaints would include things not about the sale but admin related and insurance company issues. I suspect many of those complaints were also people mixing up PHI with PPI.

You can complain about whatever you like. That is your right. However, dont make the mistake of using PPI reasons with PHI. PHI sales have a much better audit trail on the sale and are not bundled into the debt. Indeed, had all PPI sales been PHI, we would not have had this issue.

silversue_2

that is so informative DunstonH and I can't thank you enough for clarifying this. You are a star ***
What a brilliant site!