Payment Protection Insurance Coverage and Claims
If you are planning to avail of payment protection insurance, it would be best to check your monthly credit card statements first before heading over to the nearest insurance provider. This is due to the fact that PPI may come standard with the credit service that you availed. Existing loan agreements and mortgages should also be checked for the presence of a corresponding PPI Claims. The recent arguments about missold PPI policies, as well as the large number of rejected claims, have led many people to believe that banks and lenders missold the payment protection insurance policy on purpose as people are made unaware of the presence of such a policy.
This type of transaction can now be avoided due to the new guidelines released by the Competition Commission regarding the automatic inclusion of PPI policies to loans and credit card services. Consumers are now given a minimum of seven (7) days to determine if they want to purchase PPI along with a new loan or credit card service. This will give buyers a chance to choose the type of policy desired and may refuse the inclusion of PPI to a loan or credit card service. It is without question that premium payments for PPI are more expensive compared to a PPI policy that is sold separately in the market. You get to save money and a lot of headaches in the process.
Banks or lenders must also be unbiased when it comes to PPI. They should make it clear to the consumer that the chances of getting approved for a loan or credit card service are not affected regardless of availing PPI or not. It is illegal for banks and lenders to force the inclusion of PPI with any loan or credit card service offered in the market. The new rules and guidelines will help prevent the widespread occurrence of missold PPI policies and rejected claims in the market.
It should also be remembered that payment protection insurance is no different compared to other types of insurance policies as the specific policy should be oriented towards the needs of the consumer. PPI policies that have been sold along with a loan or credit card service lack this type of quality as the policy is not properly presented to the consumer. You might end up paying too much for an insurance policy that you do not need and might encounter problems when it comes to filing for a claim. It is still best to avail of payment protection insurance separately to enable you to choose the right kind of policy and coverage that is right for you and your budget. This will help prevent unnecessary expenditures on your part as monthly payments for PPI may prove significant enough to cause a huge dent on your budget.
There are also limitations when it comes to filing for a PPI claim. In the event of unemployment, the insurance provider may reject your claim if you lost your job due to violations - such as gross misconduct - in the employment contract. Accidents should show evidence that the mishap was not caused due to neglect or carelessness on the part of the claimant. Hospitalization due to pre-existing medical conditions or chronic ailments is also not covered by some forms of PPI. It would be best to contact your insurance provider for complete information regarding payment protection insurance and how to better facilitate a claim. Remember that the type of policy or coverage will differ according to the insurance provider and may provide different guidelines when it comes to filing for a claim. Contact the Financial Ombudsman Service for further assistance regarding denied or rejected claims.
This type of transaction can now be avoided due to the new guidelines released by the Competition Commission regarding the automatic inclusion of PPI policies to loans and credit card services. Consumers are now given a minimum of seven (7) days to determine if they want to purchase PPI along with a new loan or credit card service. This will give buyers a chance to choose the type of policy desired and may refuse the inclusion of PPI to a loan or credit card service. It is without question that premium payments for PPI are more expensive compared to a PPI policy that is sold separately in the market. You get to save money and a lot of headaches in the process.
Banks or lenders must also be unbiased when it comes to PPI. They should make it clear to the consumer that the chances of getting approved for a loan or credit card service are not affected regardless of availing PPI or not. It is illegal for banks and lenders to force the inclusion of PPI with any loan or credit card service offered in the market. The new rules and guidelines will help prevent the widespread occurrence of missold PPI policies and rejected claims in the market.
It should also be remembered that payment protection insurance is no different compared to other types of insurance policies as the specific policy should be oriented towards the needs of the consumer. PPI policies that have been sold along with a loan or credit card service lack this type of quality as the policy is not properly presented to the consumer. You might end up paying too much for an insurance policy that you do not need and might encounter problems when it comes to filing for a claim. It is still best to avail of payment protection insurance separately to enable you to choose the right kind of policy and coverage that is right for you and your budget. This will help prevent unnecessary expenditures on your part as monthly payments for PPI may prove significant enough to cause a huge dent on your budget.
There are also limitations when it comes to filing for a PPI claim. In the event of unemployment, the insurance provider may reject your claim if you lost your job due to violations - such as gross misconduct - in the employment contract. Accidents should show evidence that the mishap was not caused due to neglect or carelessness on the part of the claimant. Hospitalization due to pre-existing medical conditions or chronic ailments is also not covered by some forms of PPI. It would be best to contact your insurance provider for complete information regarding payment protection insurance and how to better facilitate a claim. Remember that the type of policy or coverage will differ according to the insurance provider and may provide different guidelines when it comes to filing for a claim. Contact the Financial Ombudsman Service for further assistance regarding denied or rejected claims.