Look out for exclusions
- 4TH JUNE 2007
When purchasing payment protection insurance (PPI) to safeguard your monthly repayments, it is essential that you read the small print contained within the policy says an industry expert. Simon Burgess, Managing Director of ethical and standalone payment protection provider British Insurance says that as with any form of insurance there are many exclusions within the policy which means that should you need to claim you could find that you can’t.
Figures show that accepted claims on payment protection insurance policies have the lowest percentage rate of any form of insurance and is as low as 15%.
Mis-selling of policies has recently been brought to light by the Office of Fair Trading’s and Financial Services Authority’s investigations into the sector and this has led to many unhappy policyholders seeking compensation.
Payment protection insurance is a private insurance that can be purchased by someone who has taken out any form of credit such as a credit card, loan or mortgage. The helps to ensure that the monthly commitments can be kept up should yourself find yourself out of work due to involuntary redundancy, accident or long term sickness for a period of up to 12 months (though some policies offer cover for up to 24 months).
Simon says that two of the most common problems that cause people to come out of work are back problems and nervous illness yet these are excluded from most policies. This means that the majority of people who have taken a policy have failed to read this in the small print - nor have had this highlighted to them by the salesperson - and so are unable to make a successful claim.
Along with this many people are simply ineligible to claim which Simon says is the reason behind the majority of those mis-sold policies. If you want the valuable protection offered by a payment protection insurance policy, then visit British Insurance. They offer low cost cover and ensure that the cover you buy is suitable for you and your circumstances.
