Scottish Provident - Cancellation of Unemployment Benefit

61kmac

Their insurer ( who provided insurance other than just  unemployment cover ) has stopped providing any insurance since November 2019 when  it gave notice of its intentions. Just not making money as any  company  tries to do . The good fortune  contributions from  the many just wasn't enough to cover the bad fortune of the few  

Coin-purse

Shockingly bad situation for existing Surestone/ Scottish provident customers that have paid their policies with good faith for many years, some have made decades of payment into a system  that they trusted to cover them in their hour of need.

The fact is, all "unemployment cover" insurance is currently suspended across the wider market based on covid-19. This leaves existing policy holders in a position where they cannot replace their existing policy with another provider to cover a "like for like" policy even if they did decide to continue with the farce that is on par with PPI.  

Therefore - All existing policy holders feel bitterly let down by a system that they have trusted for decades.  In the eyes of existing policy holders this looks like a massive scam.  ie: the first sign of any remote problem in the wider employment  market and the product is removed for all.  There seems to be no justice for those that have trusted the system.  

The truth is, now is not the time for insurance companies to be pulling out of supporting their products morally, but financially they are more likely to have to pay out big, so they will always find loopholes like "Force Majeure" to lean upon to cover their potential losses during these times.  Best thing they can do is pull out and hope that all of you reliable cash cows go away quietly.   which you inevitably will.

Moral of this entire thread: Know who the real criminals are. 

dunstonh

Moral of this entire thread: Know who the real criminals are.

Would that be all the people that put in the fake PPI complaints?

even if they did decide to continue with the farce that is on par with PPI. 

It not on par with PPI. It is PPI.  And it is the PPI issue that has killed the market.    Before the Coronavirus, companies were already pulling out of the market.   The cross-subsidy pool was drying up and increasing risk and reducing profitability.  CV came along and finished off the fatally wounded product once and for all.  It almost certainly will not return.

Best thing they can do is pull out and hope that all of you reliable cash cows go away quietly. 

PPI stopped being a cash cow a long time ago.

csgohan4

Coin-purse said:

Shockingly bad situation for existing Surestone/ Scottish provident customers that have paid their policies with good faith for many years, some have made decades of payment into a system  that they trusted to cover them in their hour of need.

The fact is, all "unemployment cover" insurance is currently suspended across the wider market based on covid-19. This leaves existing policy holders in a position where they cannot replace their existing policy with another provider to cover a "like for like" policy even if they did decide to continue with the farce that is on par with PPI.  

Therefore - All existing policy holders feel bitterly let down by a system that they have trusted for decades.  In the eyes of existing policy holders this looks like a massive scam.  ie: the first sign of any remote problem in the wider employment  market and the product is removed for all.  There seems to be no justice for those that have trusted the system.  

The truth is, now is not the time for insurance companies to be pulling out of supporting their products morally, but financially they are more likely to have to pay out big, so they will always find loopholes like "Force Majeure" to lean upon to cover their potential losses during these times.  Best thing they can do is pull out and hope that all of you reliable cash cows go away quietly.   which you inevitably will.

Moral of this entire thread: Know who the real criminals are. 

bottom line is insurance companies are not charities, they have to be sustainable and if they are paying out more than they getting in premiums, who in their right mind would continue on?

These policies can be pulled at anytime, which is why I don't have one, I would rather put the premiums in Income protection and life assurance

davidmcn

Coin-purse said:

In the eyes of existing policy holders this looks like a massive scam.  ie: the first sign of any remote problem in the wider employment  market and the product is removed for all.

The current situation is rather more than a "remote problem".

[Deleted User]

It does seem a bit off, like health insurance refusing to renew the moment you develop a health problem. Happened to a lot of people with pet insurance.

Seems like this kind of insurance was never worth it and should never have been offered.

csgohan4

[DELETED USER] said:

It does seem a bit off, like health insurance refusing to renew the moment you develop a health problem. Happened to a lot of people with pet insurance.

Seems like this kind of insurance was never worth it and should never have been offered.

health insurance doesn't refuse to renew, rather the premiums go up as you are more  likely to claim possibly, as long as the event happened during the period of cover and not before.