Scottish Provident - Cancellation of Unemployment Benefit

Gwawrg

Hello - I've had a letter from Scottish Provident today informing me that they will stop providing unemployment benefit cover on my policy that I have held with them since 2008.  They say the provider (SureStone) have instructed them to cancel cover from 1st July.  Can they just remove their cover like this?  I'm obviously very worried given the current economic cliamte and I will have no protection from unemployment and as a single person, how am I going to pay my mortgage if I loose my job.  I doubt any other insurer would provide unemployment protection for me now.  Has this happened to anybody else?  Help!!!

MovingForwards

It's a business decision according to Surestone's website. 

dunstonh

 Can they just remove their cover like this?

Yes. Unemployment cover is not a protected policy and can be cancelled by either party.   

 I doubt any other insurer would provide unemployment protection for me now. 

Correct.  It is too late to take one out now, even if you could find one still available to do so.    I haven't checked everyone but the providers have been pulling out of this area by the bucketload.

Has this happened to anybody else? 

yes

Durban

How shoddy. 

I know they have their business to protect but is it any wonder that a lot of people just don't trust insurance companies

Gwawrg

Thank you everyone.  I was really shocked to get the letter this morning and have been worrying all day. Yes, my trust in insurance companies has now gone!  Been happy to take my money for over 10 years, the rascals (could be ruder!).  I guess I best start saving - hard!!!!  Thanks again, at least I now know I need to support myself somehow if the worse happens.  At the end of the day, there are people in a worst position than me.  
Thanks again, you're all great and very knowledgable. xxxxx

DavidCawdell

Having received the same letter I am trying to sort things out for my son who now faces loosing his wife,job and house within 12 months. This practice by a reputable insurer?  should cast the insurance industry as being untrustworthy fraudsters.
Regards to all.....keep well

DavidCawdell

As this insurance has been proven to be worthless could I at least attempt to get all the premiums refunded?

Old_Lifer

Up to this point in time the insurance has not been  worthless.    If  you have   been covered for unemployment for years,   your premiums would have gone into a pool which would have  provided cover for lots of policyholders  and although you personally may not have made a claim it would have   paid the claims of those  policyholders who  unfortunately  did become unemployed .   For this reason you will not get a refund of premiums paid,   since  you have been purchasing cover which you have received.

A policy providing unemployment cover is not a long term contract  and an insurer may decide to stop offering this type of cover.

Unemployment insurance is comparatively inexpensive.    In the present  situation  where large numbers of people  are likely to lose  their jobs,  an insurer may feel that  this is likely  to result in a rush to take-out policies with large volumes of people paying a few  premiums  and then   in the following months submitting  large volumes of claims for many thousands of pounds each.  In this situation,  an insurer may feel that continuing  to offer unemplyment cover  is simply not viable.

MicRobe19

I received the same letter and have also had l cover with them for well over a decade. I think it's outrageous they are cancelling cover because the risk of paying out has increased. It's like having buildings insurance cancelled  when a severe storm is forecast. We have insurance in place to cover the unexpected. Do we now need insurance cancellation insurance?

csgohan4

MicRobe19 said:

I received the same letter and have also had l cover with them for well over a decade. I think it's outrageous they are cancelling cover because the risk of paying out has increased. It's like having buildings insurance cancelled  when a severe storm is forecast. We have insurance in place to cover the unexpected. Do we now need insurance cancellation insurance?

Problem now is that it is a known event and insurers are not in it to make a loss. Would you do business knowing your going to make a loss on a product? 

Nothing personal but business and they have stopped offering and cancelled current accounts.  Insurers are not a charity and I am sure you don't give away your money for fun either

Old_Lifer

The idea behind insurance is that each class of business (i.e. each type of policy) is run at a profit.    How would you feel as a shareholder  or a  'with-profits' policyholder  if,   for each  £1000 of premiums received  your company suddenly  started  paying-out £10,000  or  £20,000 ?      How do you think that  would  impact  on the dividend you  receive  on your shares   or the terminal  bonus you receive  on your 'with profits' endowment?    Would you not think it prudent  to stop selling that type of policy for  the time being?