Employment Protection

melarnz1here

Hi

I was told that our company was closing down and I spoke to a financial advisor and because I was not yet officially put at risk, arranged a separate employment policy. Because I had been at my company for so long I could not claim for 3 months. During that time I found another job and never made a claim. Somebody told me that because I knew I was getting made redundant even though I was not at risk, I should not have been allowed the policy. Can anybody advise me on this please?

Thanks

Melanie

Nasqueron

If you knew you were being made redundant then when taking out the policy did you tell them you were at risk? If you chose a policy that wouldn't pay out for 3 months then what is the issue?

It's not a matter of you no being allowed to buy the policy, if you told them the truth and the company allowed you to take the policy, what is the issue? If you'd not got a job for 3 months you could have claimed?

dunstonh

Somebody told me that because I knew I was getting made redundant even though I was not at risk, I should not have been allowed the policy.

That does not make sense. If you knew you were getting made redundant then you were at risk. Yet you say you were not at risk.

If the company has announced that it is going to restructure or make redundancies but not known where then at that point its too late.

If the company has not made any announcement but employees anticipate it may happen then its not too late.

melarnz1here

I worked for a finance company. They stopped selling produncts and just continued with the collections and so closed branches down gradually, every 6 months. People were only put at risk once their branch had been told it was closing down. I was told the company was closing then 4 years later got made redundant. I told the financial advisor the information and he sorted out a policy for me.

However, this was years ago and didnt think anything of it as at the time I made the decision not to claim and take the job - until i was talking to someone about it and they said that the company would not have paid out as I knew the company was closing down. I was surprised at the time, but obviously was pleased the guy said i was eligible for cover.

Nasqueron

melarnz1here wrote: »

I worked for a finance company. They stopped selling produncts and just continued with the collections and so closed branches down gradually, every 6 months. People were only put at risk once their branch had been told it was closing down. I was told the company was closing then 4 years later got made redundant. I told the financial advisor the information and he sorted out a policy for me.

However, this was years ago and didnt think anything of it as at the time I made the decision not to claim and take the job - until i was talking to someone about it and they said that the company would not have paid out as I knew the company was closing down. I was surprised at the time, but obviously was pleased the guy said i was eligible for cover.

A lot will depend on 2 things:

1) Did you disclose at the time you knew the job would end soon i.e. were you honest and up front and they gave the policy anyway?
2) Following on, would the policy have paid out anyway with them knowing this?

dunstonh

I was told the company was closing then 4 years later got made redundant.

If that was an official declaration then it was wrong to be sold it. However, if it was just local management chat then its not. The fact it took 4 years suggests it was not senior management.

However, this was years ago

Before or after Jan 2005?

and they said that the company would not have paid out as I knew the company was closing down. I was surprised at the time, but obviously was pleased the guy said i was eligible for cover.

It wouldnt likely have ever been an issue as insurers check cases where they are bought and claims are made in the early months. However, 4 years clearly indicates you were not recently told it was closing down.