For those of you who are first time visitors to our site, I’m Gemma and I manage the PPI mis selling investigation team at Gladstone Brookes. Over the last few weeks we have been trawling though just a few of the vast number of reasons why so many of us have cause to complain when it comes to the sale of Payment Protection Insurance.
What is Payment Protection Insurance?
Payment Protection Insurance is sold on the basis that it will cover you in the event of you becoming sick or redundant from work. It is designed to cover the repayments on you r loan, credit card, mortgage, etc.
What is not usually highlighted at the point of sale, is that these policies only pay out in around 17% of cases; which would mean that over 80% of people with PPI will never see any benefit in purchasing such a policy.
If you are self-employed and you have a PPI policy, my advice to you is to check the small print, there is a good chance you are not covered. If you have tried to make a claim on it and have been declined, what I’m about to say next will probably sound very familiar.
If you are self-employed the policy is unlikely to pay out for sickness as you would be in charge of when you work and have no-one to answer to but yourself, also you can work as little or as many hours as you like so they may not be able to judge how much would normally earn as it many fluctuate vastly, especially in the current economic climate.
Well what about the redundancy part? Unfortunately, being self employed you cannot make your self redundant, you can apply for bankruptcy; a small technicality I know but one that increases your insurers profit margins never the less!
Don’t get me wrong there are some policies that do cover self-employed but the vast majority of them don’t, even if you think you are or where told you are covered, have a read through your terms and conditions: it may not be the case.
You may think, “I’m an agency worker but I work full time for a company, the agency pays me and I’ve been with the same agency for years: I will be covered.”
Sorry to burst your bubble but usually not.
As an agency worker you will be given jobs by your agency, many of which will be on short term contracts. This makes you a high risk for your insurer as you may have to use the policy between contracts, costing your insurer to pay out. You guessed it another clause for your insurer to hide behind! There will usually be something in there stating that they’ll only payout if you have been employed by the same company for X amount of time (a lot longer than your average 6-12 month agency contract!)
And the redundancy bit, well as an agency worker you’re classed as temporary staff and likely to need this if your job ends and there is a gap between you getting your next one, hence yet another “get out of jail free” clause for your insurer to introduce into your contract.
If you work for an agency, please, check your agreement; this is one of the main reasons that insures will decline your claim.
If your work less than 16 hours a week you may not be eligible of a pay out on your PPI policy. It’s down to you not paying enough tax and being on a different code, but the up shot is they will rarely pay out.
Please don’t just take my word for it, check over you contract, if your policy does cover you then, fantastic; you are one of the lucky few; if it does have any clauses in there that you were not aware of then contact us for free, no obligation advice.
Have your say
As usual, I would really like to hear your comments on this or any other issue you have had with PPI. Your experience matters and should be shared, who knows you might be able to stop the same thing happening to someone else or you may find someone in the same boat as you!
If you are unsure if have PPI, just check your credit agreement, it often shows separately on this, or give our initial claims team a call on free phone (08000 469 144) and we will go through it with you and assess your case to see if you could claim back PPI or alternatively why not use our online claim form and we can get back to you.
Have your say, whatever it is, voice your views and be heard!
Bye for now,