Income Protection Insurance

Logan_03

All,
Hoping I can get some advice regarding Income Protection Insurance?

I had been paying for Income Protection Insurance since approx 2012 and in 2017 switched insurer to First Call Insurance Services who act as the broker for the Davies Group Limited. Having been made redundant in 2012, my reason for taking out the policy, like so many other people, was basically to get some security and reduce the stress and anxiety if I ever went through redundancy again.

In February 2020 at the start of the COVID pandemic, I was Unfairly Dismissed this was after having worked with the same employer for eight years. My employer stated the reason for termination was 'poor performance', this was despite my last Client Engagement sending an e-mail to my line manager and employer to personally thank me for my contribution in assisting them in reaching their project goals, just a few months prior to dismissal. At this point COVID had just kicked in and projects were being cancelled, delayed and pushed back and I at this point had been on the bench for  three months. In the several months since, I have been contacted a couple of times by my ex-Employers resourcing team to ask if I would be interested in working for them as a contractor. (These were merely scoping calls to see if they could put my name against a role they were bidding for).

My query is this, can an Insurer take a one sided view of termination and argue the reason for not paying out on the policy being 'poor performance' the argument used to end my contract, when there is evidence to contradict this view i.e. client engagement level feedback and calls from ex-Employer?

Lastly, in this situation what are my options?

I feel I have been paying for a service that has been welched on at the first opportunity. Not entirely surprising in the current pandemic situation.

Thanks in advance for any advice you can give!

Cheers,

Logan_03

Weighty1

Unfortunately, irrespective of your take on the situation you have been terminated, not made redundant and these sorts of plans don't cover dismissal for anything other than redundancy.  You've not been welched on, the insurer has simply kept to their side of the agreement.  Unless you can find a way of your employer saying they made you your role and therefore you redundant I don't think there's much else can be done and the chances of your employer doing that, when they would be liable for redundancy pay based on your length of service, is probably slim to none.

The only other route is probably taking your ex-employer to an industrial tribunal and claiming unfair dismissal.

dunstonh

I had been paying for Income Protection Insurance since approx 2012 and in 2017 switched insurer to First Call Insurance Services who act as the broker for the Davies Group Limited. Having been made redundant in 2012, my reason for taking out the policy, like so many other people, was basically to get some security and reduce the stress and anxiety if I ever went through redundancy again.

Just for clarification (given your thread title) you have Payment protection (PPI) rather than income protection (PHI).

My query is this, can an Insurer take a one sided view of termination and argue the reason for not paying out on the policy being 'poor performance' the argument used to end my contract, when there is evidence to contradict this view i.e. client engagement level feedback and calls from ex-Employer?

It is not taking a view.  It is purely looking at the facts as they stand.  It is a black and white situation.

I feel I have been paying for a service that has been welched on at the first opportunity. Not entirely surprising in the current pandemic situation.

The PPI policy pays out on redundancy.   You were not made redundant.  You were sacked.  this is not a case you can blame the insurer as they are acting correctly.

Lastly, in this situation what are my options?

If you feel you have been unfairly dismissed then you need to look at an industrial tribunal.  If that changes the outcome, then the insurer would reconsider.

Sandtree

I am surprised your only concern about being fired is the ASU/PPI payout... what are your career plans now which make you unworried by the being fired on your next reference?

You need to read your policy document's unemployment section to see the T&Cs, I certainly agree the majority are redundancy only but there is a small minority that are slightly more generous and may cover other dismissals as long as its not for gross misconduct.

As others have said, the insurer or their claims administrators are not an employment tribunal and so will not consider if your employers did the right thing or not but instead will simply consider the circumstances against the terms of the policy.