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    • FatherAbraham
    • By FatherAbraham 15th Sep 18, 10:56 PM
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    FatherAbraham
    Didn't meet policy requirements - how do I get premiums back?
    • #1
    • 15th Sep 18, 10:56 PM
    Didn't meet policy requirements - how do I get premiums back? 15th Sep 18 at 10:56 PM
    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.
Page 1
    • zx81
    • By zx81 15th Sep 18, 11:11 PM
    • 18,549 Posts
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    zx81
    • #2
    • 15th Sep 18, 11:11 PM
    • #2
    • 15th Sep 18, 11:11 PM
    How long was your probation period?

    A year or more sounds very unusual. Coverage would have started once the probation period was over.
    • FatherAbraham
    • By FatherAbraham 16th Sep 18, 7:59 AM
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    FatherAbraham
    • #3
    • 16th Sep 18, 7:59 AM
    • #3
    • 16th Sep 18, 7:59 AM
    How long was your probation period?

    A year or more sounds very unusual. Coverage would have started once the probation period was over.
    Originally posted by zx81
    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.
    • ACG
    • By ACG 16th Sep 18, 8:44 AM
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    ACG
    • #4
    • 16th Sep 18, 8:44 AM
    • #4
    • 16th Sep 18, 8:44 AM
    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 Adviser
    You 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.
    • FatherAbraham
    • By FatherAbraham 16th Sep 18, 9:53 AM
    • 870 Posts
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    FatherAbraham
    • #5
    • 16th Sep 18, 9:53 AM
    • #5
    • 16th Sep 18, 9:53 AM
    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.
    Originally posted by ACG
    Probationary period was never passed during the term of the policy, so that implies I should request a refund of all premiums.
    • Quentin
    • By Quentin 16th Sep 18, 10:22 AM
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    Quentin
    • #6
    • 16th Sep 18, 10:22 AM
    • #6
    • 16th Sep 18, 10:22 AM
    No harm in asking!
    • dunstonh
    • By dunstonh 16th Sep 18, 11:15 AM
    • 94,460 Posts
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    dunstonh
    • #7
    • 16th Sep 18, 11:15 AM
    • #7
    • 16th Sep 18, 11:15 AM
    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). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • jonesMUFCforever
    • By jonesMUFCforever 16th Sep 18, 12:18 PM
    • 25,176 Posts
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    jonesMUFCforever
    • #8
    • 16th Sep 18, 12:18 PM
    • #8
    • 16th Sep 18, 12:18 PM
    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?
    What goes around - comes around
    give lots and you will always receive lots
    • FatherAbraham
    • By FatherAbraham 16th Sep 18, 1:04 PM
    • 870 Posts
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    FatherAbraham
    • #9
    • 16th Sep 18, 1:04 PM
    • #9
    • 16th Sep 18, 1:04 PM
    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.
    Originally posted by dunstonh
    It was pure redundancy insurance. There was no sickness element.
    • FatherAbraham
    • By FatherAbraham 16th Sep 18, 1:10 PM
    • 870 Posts
    • 636 Thanks
    FatherAbraham
    No harm in asking!
    Originally posted by Quentin
    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.
    • FatherAbraham
    • By FatherAbraham 16th Sep 18, 1:20 PM
    • 870 Posts
    • 636 Thanks
    FatherAbraham
    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?
    Originally posted by jonesMUFCforever
    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?
    • ACG
    • By ACG 16th Sep 18, 2:04 PM
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    ACG
    If they are not able to say they would have covered you, then you would get your money back.
    Chances are is the broker would also have their commission clawed back.
    I am a Mortgage Adviser
    You 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.
    • Quentin
    • By Quentin 16th Sep 18, 2:39 PM
    • 37,252 Posts
    • 21,407 Thanks
    Quentin
    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.
    Originally posted by FatherAbraham
    How else you going to know.?

    You already told us you made a mistake. So highly unlikely you going to be accused of fraud etc!

    Expect to be told to buzz off then there will be no harm for you if they are actually sympathetic

    How much do you value your time? It will take half an hour to write a letter and 58 pence to post it. ( Second class but you waited all this time to consider trying for a refund - so saving 9p may be more important than getting it there a day earlier!)

    When saying no harm in trying I mean that apart from it maybe a waste of time there is nothing much to lose and is the only way you going to get a definitive answer!

    Opinions on a public forum are just that and cannot be relied on!!
    • dunstonh
    • By dunstonh 16th Sep 18, 5:25 PM
    • 94,460 Posts
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    dunstonh
    You have no issue of fraud as no claim is involved and it takes a lot for you to be accused of fraud. the FOS themselves are very liberal and couldnt think that some would commit fraud.

    So, really its an issue of whether they decide out of goodwill to refund you or not.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • jonesMUFCforever
    • By jonesMUFCforever 16th Sep 18, 9:33 PM
    • 25,176 Posts
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    jonesMUFCforever
    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?
    Originally posted by FatherAbraham
    But because you lied they did put you on risk and as far as they were aware you had a live policy. By all means try to get something back if you think you have a chance but as a previous poster has said you could be put on a blacklist and may find it very difficult to get cover in future.
    What goes around - comes around
    give lots and you will always receive lots
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