Income protection insurance

jennywren1982

I've realised my income protection insurance has been incorrect for 5 years since changing jobs and significantly reducing my salary so I have therefore been paying too much. I've raised this with the insurance provider to see if I can get a refund on the amount I have overpaid but they have said it is my responsibility to ensure it is correct. Whilst this is the case, if I had tried to make a claim they would not have paid out to the value of the cover as I am not earning that much so I would not have been able to benefit from this overpayment so surely I am entitled to a refund on that basis when I can prove my earnings. Any advice on how best to go about getting a refund would be greatly appreciated.

CliveOfIndia

Unfortunately, what the insurance company have said is correct - it's your responsibility to keep them informed of any changes to your circumstances.

It's just the same as if you sell an expensive piece of artwork, for instance, and you don't inform your home contents insurance.  Previously you were paying an increased premium to cover that expensive painting, now you don't have it, but if you don't inform them, they assume you still want it covered.

DullGreyGuy

jennywren1982 said:

I've realised my income protection insurance has been incorrect for 5 years since changing jobs and significantly reducing my salary so I have therefore been paying too much. I've raised this with the insurance provider to see if I can get a refund on the amount I have overpaid but they have said it is my responsibility to ensure it is correct. Whilst this is the case, if I had tried to make a claim they would not have paid out to the value of the cover as I am not earning that much so I would not have been able to benefit from this overpayment so surely I am entitled to a refund on that basis when I can prove my earnings. Any advice on how best to go about getting a refund would be greatly appreciated.

So this is an ASU/PPI policy or a PHI? I'm assuming its ASU

So you changed jobs and forgot to tell them at the time?
They've been sending an annual renewal each year which instructs you to check its all still correct and contact them if it isnt and each year you saw it, didnt spot it and so didnt tell them?

So though they've told you to tell them, and reminded you multiple times to tell them, you think its their fault and therefore they need to pay you?

Commissions will have been paid based on the premiums, reinsurance paid based on the level of cover, capital held etc. Most of those will be irrecoverable for them so to refund because of your mistakes isnt just taking money out the xmas party fund because you didnt claim. 

It would be reasonable for them to correct this years premiums, it would be generous for them to consider the prior year. It would be extraordinarily generous to consider the prior years. 

Your best way to get it? Be more contrite and acknowledge its your responsibility

jennywren1982

Thanks for your help. I just wanted to be sure where I stood.