PHI refusal to pay out

Desperately_Seeking_Help_2

Has anyone else had problems with getting Scottish Provident to pay out on a PHI policy? They have two definitions to how they classify you: "employed" and "self-employed" . I have been paid into my limited company for work done (as I had a few roles and was able to invoice gross) and this , albeit common practice, does not fall into their two definitions exactly. Therefore they are not at liberty to pay out. It has been a battle for some years. I wonder if others have had this issue and perhaps a claim under the Unfair Contract Terms 1977 could assist? Do I need to sue (expensive) or is their a Consumer chary / organisation that will assist customers like me? Thank you.

dunstonh

The complaints process is free of charge to use if you feel their decision is wrong. If you disagree with the complaint response you have a right to refer it to the ombudsman.

kingstreet

I would expect any insurer to treat income for IP purposes as your salary and dividends from your SA302s or Tax Calculations, perhaps taking an average of the two years prior to the disability.

Is that what they want to do an you are resisting?

The favourable tax treatment for contractors and approach by some lenders in taking daily rate to calculate income would result in a potential moral risk that you might be better off being sick than being in work.