Claiming back mortgage protection insurance (MPI) premiums is not typically possible, as MPI is designed to cover your mortgage payments under specific circumstances, such as illness, disability, or job loss, depending on the policy terms. However, if you believe your MPI policy was mis-sold to you — for example, you were ineligible for the cover, it was added without your knowledge, or you were pressured into buying it — you may have grounds to make a complaint and potentially reclaim the premiums paid.
Understanding MPI Claims:
Policy Purpose:
Mortgage protection insurance is intended to provide financial security by covering mortgage payments in case of unforeseen circumstances affecting your ability to pay.Mis-Sold Policies:
The key to a successful claim for reclaiming premiums lies in whether the insurance was mis-sold.Potential Grounds for Mis-Selling:
Ineligibility:
You were sold a policy for which you were ineligible (e.g., due to pre-existing medical conditions or employment status).Lack of Information:
The terms, conditions, and exclusions were not fully explained, leaving you unaware of important aspects of your coverage.Unaware of Policy:
You were unaware that mortgage protection insurance had been added to your mortgage.Pressured Sales:
You felt pressured into buying the policy or were led to believe it was mandatory for mortgage approval.Steps to Reclaim MPI Premiums:
Review Your Policy Documents:
Gather all relevant documents related to your MPI policy and mortgage agreement.Identify Mis-Selling Evidence:
Look for evidence within your documents or circumstances that indicate the policy was mis-sold.Contact Your Lender or Insurance Provider:
Start by making a formal complaint to the company that sold you the policy. Clearly outline why you believe the policy was mis-sold and provide any supporting evidence.Financial Ombudsman Service (FOS):
If your complaint is not resolved to your satisfaction, you can escalate it to the Financial Ombudsman Service in the UK. The FOS can review your case independently and make a decision on whether you’re entitled to a refund of premiums.Considerations:
Time Limits:
Be aware of any time limits for making a complaint. Typically, you have six years from when the policy was sold or three years from when you first became aware (or should have reasonably become aware) of a potential mis-selling claim.Professional Advice:
Consider seeking advice from a financial adviser or legal professional, especially if the case is complex.Conclusion:
While mortgage protection insurance serves as a financial safeguard, there are instances where policies may have been mis-sold. If you find yourself in such a situation, it’s important to understand your rights and the process for making a complaint. Successful claims can lead to the refund of premiums paid, providing financial relief to those affected by mis-selling.
Answered by:
Richard Johnson
Protection Consultant
Last Updated:
18.06.2024
Answered by:
Richard Johnson
Protection Consultant
Last Updated:
18.06.2024
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