Life insurance complaint over insured

Checkins

Hope someone can advise. CBS have admitted they sold.me life insurance with PPI in 2006 for a value of £90k when my mortgage was only £70. They have offered to pay me back the life element different between £70k and £90k but not the PPI element. I didn't realise I had PPI built into this. Should they not refund me for my policy not just the difference. They say not because the policy was still fit for purpose they think there was a system error.

dunstonh

hey have offered to pay me back the life element different between £70k and £90k but not the PPI element.

Did you complain about the PPI or just the life assurance?

I didn't realise I had PPI built into this. Should they not refund me for my policy not just the difference.

They should refund you the difference as that is the error.

They say not because the policy was still fit for purpose they think there was a system error.

Someone probably hit 9 and instead of 7. So, adjusting it to the correct amount is what you would expect the outcome to be.

Checkins

Thank you for your quick response. I did complain about the PPI element as I also have another policy with them for unemployment cover which I complained about. I believe these were all part of the mortgage application and not separate. I have always been with CBS and always saw the same person in branch. I never filled out forms, all done on screen. My applications were signed the same time as the insurances. To confuse things even more. I moved house in 2014, I didn't realise my life policy was separate until I received a letter from Aviva saying they lost contact (2015). I contacted them to arrange to change my policy and they told me I couldn't as it had been over 6 months since I'd moved house. I have since read the small print on my policy given what's happened with CBS to find out they should have changed it. Aviva are now looking into this, they have admitted over the phone that I should have been able to change it. But now because it's less than 5 years to the end of the policy I can't remove the PPI element or change it.

Checkins

Just to clarify, I have also been a big fan of life insurance and critical illness cover, this was and still is important to me. I don't believe in any kind of payment protection plans as I have excellent benefits through work.

[Deleted User]

Checkins wrote: »

. Should they not refund me for my policy not just the difference?

No.
Adjusting it to the correct amount is what you would expect the outcome to be.

No more, no less.

Of course, the refund of the difference should also have interest added.

As to the PPI, that appears to be a separate complaint which has been rejected. What were your complaint reasons?

Checkins

My complaint was I didn't know they were included within my life policy. I also complained about the Unemployment policy, I believed these policies were set up at the point of my mortgage applications and believed them to be part of the application.

Checkins

Problem I have is the employment policy was signed 2 months after the mortgage. I have dug out the paper work and have 2 copies of the documents sent to me asking me to sign . I can only assume at the time I didn't sign this during the meeting which is why CBS kept sending me the documents each month from Jan until March which is when they were signed.

Checkins

My life policy with PPI was signed for during the mortgage application.

Checkins

They have rejected my complaint for the employment policy but are offering based compensation based on pelvin. What's really confusing is they are being dealt with by different departments as they are saying ones a life policy and ones a protection policy.

[Deleted User]

Checkins wrote: »

They have rejected my complaint for the employment policy but are offering based compensation based on "pelvin".

It might be an idea to stop posting additional "information" in multiple posts unless you receive a response in the interim.

Bluntly, your PPI complaint has been rejected and you've instead been offered a Plevin refund.

If you have valid reasons to disagree, refer your "complaint" to the Ombudsman.

Checkins

I believe my valid reasons for the PPI complaint would be I felt this was part of the mortgage application process and not compulsory. They have written back to me telling me that they never pressured customers into taking out policies.