Policy payout interest due? 21 July 2018 at 7:55PM edited 30 November -1 at 12:00AM in Insurance & Life Assurance 5 replies 661 views

Pzulba

Back in April my SiL died suddenly (aged 51), so obviously a PM was required

Following PM a death cert was issued and funeral proceeded, cause of death was believed to be Meningitis; but not yet determined waiting on Lab tests etc

Funeral went ahead but Life insurance payout delayed re above (& possibly due Policy was taken out as part of employment package within last two years)

Official cause now determined as Meningitis and payout received this week

Payout received was the Nominal amount due on death and no interest from date of death to date of payout - is this correct

Can’t help feeling that someone has been sat on Payout from original claim date till actual payout and running up interest to their account

Comments please

Pzulba - Out of Africa (Retired)

ValiantSon

Why would you expect interest?

The insurer has settled the claim once they had a definitive cause of death. That's the end of the matter.

Pzulba

Yes I do, OK I accept that they could holdback the payout whilst awaiting confirmation of cause of death, but surely they are holding the funds on initial notification and providing no problems (as in this case) they should pay interest for the period in question

If he had died as result of say car crash the funds would have been released immediately, but as death was result of obscure medical condition and there was a clause to cover events such as pre-existing or suicide!!! They have rightly held up payment, but once clarification obtained the funds should be released as per date of claim and interest (in this case 3 months) should be paid!!!


Pzulba - Out of Africa (Retired)

paddyandstumpy

Nope. Doesn't work like that.

If there was a fatal car crash and cause of death was obvious, then yes; you would have received the money faster.

But that doesn't entitle you to interest because they took time in validating there was a claim.

ValiantSon

Look, it's simple, no interest is due. The money wasn't yours until they authorised payment, so no interest could be earned on it.

Just accept that you are wrong.

You came looking for an answer to your question. You got an answer, but you didn't like it. Life is tough. Move on.

dunstonh

Can!!!8217;t help feeling that someone has been sat on Payout from original claim date till actual payout and running up interest to their account

How long was the gap between the official cause of death being determined and the payout