Redundancy insurance

dsb19

I am being made redundant after furlough ends and have insurance. I called them and they said the broker was adding a clause to say if made redundant due to Covid 19 then they won't pay out.  I took the insurance out way before the virus.  Is this allowed? Thanks in advance.

lincroft1710

I cannot see that an insurance broker can add a clause to an insurance policy, only the insurance company can do this. There may be a clause in the policy terms and conditions which allows the company to amend the terms and conditions of the policy during its lifetime.

Jeremy535897

Without doing any research at all, I would suggest that an insurance company that was allowed unilaterally to change the terms of its insurance after the event leading to a claim happened would make a lot of money in the very short time it was in business.

Galloglass

Jeremy535897 said:

Without doing any research at all, I would suggest that an insurance company that was allowed unilaterally to change the terms of its insurance after the event leading to a claim happened would make a lot of money in the very short time it was in business.

Just read up on the 4 corners rule. They (and you) are bound by the terms agreed at the outset.
https://en.wikipedia.org/wiki/Four_corners_(law)

And even if there was a clause to allow retrospective changes to terms, that term itself would be open to challenge. If they do play games then it's off the Financial Ombudsman or the court.