Didn't meet policy requirements - how do I get premiums back?
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FatherAbraham
Posts: 1,024 Forumite
This is a bit embarrassing, but I misbought a redundancy insurance policy a couple of years ago.
The policy did not cover probation periods, the broker asked whether I was on a probation period, and I answered that I wasn't - but I had made a mistake, had misunderstood my employment contract' s provisions, and I was in a probation period.
When I discovered the true situation, after almost a year, I realized that my policy was invalid, and I wasn't covered, so to prevent further loss, I cancelled the policy.
I am not claiming that the policy was missold. Nevertheless, the policy would never have protected me against redundancy - any claim would have been refused.
How can I get my premiums refunded, if it's possible? What approach should I take with the insurer? If the policy was never claimable against, then the insurer was taking no risk, and shouldn't have had the premiums - but that's what I think, not necessarily what the insurer thinks.
Any thoughts on undoing misbought Insurance? About a thousand pounds of premium were paid.
The policy did not cover probation periods, the broker asked whether I was on a probation period, and I answered that I wasn't - but I had made a mistake, had misunderstood my employment contract' s provisions, and I was in a probation period.
When I discovered the true situation, after almost a year, I realized that my policy was invalid, and I wasn't covered, so to prevent further loss, I cancelled the policy.
I am not claiming that the policy was missold. Nevertheless, the policy would never have protected me against redundancy - any claim would have been refused.
How can I get my premiums refunded, if it's possible? What approach should I take with the insurer? If the policy was never claimable against, then the insurer was taking no risk, and shouldn't have had the premiums - but that's what I think, not necessarily what the insurer thinks.
Any thoughts on undoing misbought Insurance? About a thousand pounds of premium were paid.
Thus the old Gentleman ended his Harangue. The People heard it, and approved the Doctrine, and immediately practised the Contrary, just as if it had been a common Sermon; for the Vendue opened ...
THE WAY TO WEALTH, Benjamin Franklin, 1758 AD
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Comments
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How long was your probation period?
A year or more sounds very unusual. Coverage would have started once the probation period was over.0 -
Deleted_User wrote: »How long was your probation period?
A year or more sounds very unusual. Coverage would have started once the probation period was over.
The probation period never ended during the time I held the insurance.
I agree that a probation period of longer than a year is unusual, but that's not really the point -- the insurance was only supposed to be bought by someone who had completed the probation period, but the probation period had not ended when I bought the policy, and did not end during the time I held the policy.Thus the old Gentleman ended his Harangue. The People heard it, and approved the Doctrine, and immediately practised the Contrary, just as if it had been a common Sermon; for the Vendue opened ...THE WAY TO WEALTH, Benjamin Franklin, 1758 AD0 -
They may have still offered cover but no payout until the probationary period had been completed.
You may find they only offer to refund the premiums until probationary had been passed.
You need to write to the insurance company.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
They may have still offered cover but no payout until the probationary period had been completed.
You may find they only offer to refund the premiums until probationary had been passed.
You need to write to the insurance company.
Probationary period was never passed during the term of the policy, so that implies I should request a refund of all premiums.Thus the old Gentleman ended his Harangue. The People heard it, and approved the Doctrine, and immediately practised the Contrary, just as if it had been a common Sermon; for the Vendue opened ...THE WAY TO WEALTH, Benjamin Franklin, 1758 AD0 -
No harm in asking!0
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Was it redundancy only or accident and sickness as well? Accident and sickness are not affected by probation.
Redundancy cover isn't normally given in the first months of a new policy anyway. Often 6 months. So, if the probation period more or less matched the qualifying period, that would normally be considered fine.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
If the OP was asked whether he was on a probation period and he lied (whether intentionally or by accident) how has he got any chance of getting any premiums back?0
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Was it redundancy only or accident and sickness as well? Accident and sickness are not affected by probation.
Redundancy cover isn't normally given in the first months of a new policy anyway. Often 6 months. So, if the probation period more or less matched the qualifying period, that would normally be considered fine.
It was pure redundancy insurance. There was no sickness element.Thus the old Gentleman ended his Harangue. The People heard it, and approved the Doctrine, and immediately practised the Contrary, just as if it had been a common Sermon; for the Vendue opened ...THE WAY TO WEALTH, Benjamin Franklin, 1758 AD0 -
No harm in asking!
Well, a concern might be that drawing attention to the mistaken declaration on purchase leads to accusations of insurance fraud, or blacklisting. That's definitely harmful.
Then there's the problem of one's expectations being raised, which would be harmful if there were no hope of a successful outcome.
Finally there's the time and cost involved in writing and mailing a convincing letter to the insurer.Thus the old Gentleman ended his Harangue. The People heard it, and approved the Doctrine, and immediately practised the Contrary, just as if it had been a common Sermon; for the Vendue opened ...THE WAY TO WEALTH, Benjamin Franklin, 1758 AD0 -
jonesMUFCforever wrote: »If the OP was asked whether he was on a probation period and he lied (whether intentionally or by accident) how has he got any chance of getting any premiums back?
My argument is that I was never insurable under the policy, so the insurer never risked any liability.
I wouldn't really expect the whole premium back - commission to the broker should hardly be refunded, nor the admin cost of setting up and running the policy.
However, the essential insurance element of the policy should be refundable, since no insurance risk was ever carried by the insurer.
Are you sure about your definition of lying? Doesn't lying imply intent?Thus the old Gentleman ended his Harangue. The People heard it, and approved the Doctrine, and immediately practised the Contrary, just as if it had been a common Sermon; for the Vendue opened ...THE WAY TO WEALTH, Benjamin Franklin, 1758 AD0
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