Looking after your interests: the terms and conditions of payment protection insurance
- 20TH JUNE 2007
Whenever you are signing any form of contract, there should be a little voice in your head telling you to read the small print. It is often the terms and conditions that tell you exactly what you are getting yourself into. Believe it or not, the conditions of payment protection insurance (PPI) are no different.
Consumer watchdog Which? has commented on payment protection insurance and stresses the need to make sure that any individual taking out a policy knows exactly what he or she is letting him or herself in for. Many of the nasty little exclusions buried deep in the small print have actually prevented individuals claiming in the past, which is why the successful claims percentage is lower than any other insurance available at just 20%.
Simon Burgess, Managing Director of the ethical payment protection insurance provider British Insurance, has pointed out the main reasons why over 8% of claims on payment protection insurance are unsuccessful: “Certainly, stress and backache, which are the two most common reasons why people go off sick from work, are excluded from a lot of payment protection insurance policies. Sadly, many policyholders are unaware that these health complaints are not covered by their insurance until it is too late.”
Burgess also pointed out some people were unable to claim anyway as a result of ineligibility, which ultimately meant that they should have never been sold the policy. Reading the small print can protect individuals against this occurring in the future and enable everybody to choose a policy that suits their own personal needs.
