Redundancy insurance - advice on claim pls.

Austinhead

I took out some redundancy insurance back in Sept when I discovered the company i was working for was being bought out by major competitor. Early Oct when the buy out happened we were all put "at risk". Consultation period commenced with reps from all dept at risk. During the consultation process it was agreed that everyone would be given a 6 week notice period.

I was told, along with the rest of the Dept, verbally, that it was likely we would be made redundant, and that the leaving date would be 31st Jan. I was told this in early Nov - i can't remember exact dates because it was all verbal and had been rumoured for a long time.

Because of the 6 weeks notice period agreement, up until 6 weeks prior to my intended leaving date of 31st Jan, i could be told that a) my leaving date was to change, b) offered an alternative position, or c) told that I would not be leaving. I need to stress however that it was unlikely that any of this would happen, apart from b.

I left and made my claim for redundancy insurance. My employer wrongly gave the Oct at risk date on the claim form, and my claim was rejected as there was a 60 day period after commencement of the policy where if you told of redundancy they would not pay.

This morning i have spoken to the insurance company. They advised me that they need to know the date i was told of my redundancy, verbally or otherwise, not the at risk date. I spoke to HR who confirmed that from checking minutes from the consultation i must have been told of redundancy 56 days after commencement of the policy the question is though, that due to the 6 weeks period as agreed during consulation, i could, conceivably have been kept on and therefore it was not 100% sure i would be made redundant on 31st Jan until 6 weeks prior to this date, which is outside of the 60 day window and would therefore mean payment of the policy.

I know nothing of insurance, and wanted to ask if anyone on this board can advise me as to whether they will care about the 6 weeks notice, or whether this will be dismissed and the policy claim rejected, given i was told of intention of redundancy in early Nov. What is my best chance of getting this paid out ??.

HR are still working at the company, but my boss - who informed me of redundancy is not.

Please please please advise if possible, this is worth a lot of money, and since i'm now 4 months pregnant (found out a week before leaving) the chances of me getting another job are practically zero.

Thank in advance.

dunstonh

The minute you become aware of potential redundancies then its too late. It doesnt matter if it may or may not impact on you or not.

Vancat

Hi
sorry to hear of your redundancy, and good luck with your pregnancy.
I have previously claimed on redundancy insurance, (but mine had been running for years before the event.)
I now deal, in my employment, with completing these claims for ex staff.
Every claim form I've seen, and there have been many over the last 12 years, ask in so many words if the claimant "could have possibly known or suspected" the likelihood of impending unemployment at a certain date.
The certain date would be when they took out the policy.
As you've said, you only took out the cover because you heard that your company was being taken over/bought out.
I think the insurer will take that date as "when you suspected" , and therefore refuse to pay.
I may be wrong, but personally I wouldn't expect them to pay out.
Regards
VC

Austinhead

Thanks for your replies.

Just to confirm, the insurance company were happy that when i took out the policy i did not know of any redundancy and it is not because of this that they initially refused to pay. Neither are they concerned with the date we were put "at risk of redundancy". They confirmed that they need the date at which i knew i would be made redundant. I am questioning whether the 6 week prior to leaving would be adequate given my previous post?

Thanks again in advance.