Broker provided incorrect information

WN4

If a broker provides (emailed) details of an Income Protection policy and it is subsequently taken out on that basis , is there any recourse for the policyholder if the information proves to be incorrect?

Specifically, it was about automatic indexation & the broker stated, if required, it could be cancelled prior to the inception anniversary each year. (This may be necessary to avoid over-insurance due to the 75% income rule and/or the increase in premium)

This information has proved incorrect as indexation will no longer apply if cancelled on two successive occasions according the the insurance company.

In order to retain the option, the only option is to cancel it biennially but this could mean being over insured and would mean a premium increase on each occasion indexation is applied.
The broker has admitted a mistake was made but cannot make amends. There are no other insurers to choose from due to occupation class & level of cover.

Could anyone advise on this matter?

Pablo Sanchez

He made an error and admitted it, what sort of recourse would you like?

Take the idexation every year and then write to them requesting to reduce cover by the corresponding amount. However if your wary of being overinsured i wouldnt be too worried about having indexation turned off.

Your free to increase the cover whenever you wish, but this will be subject to medical evidence being provided, that might be your safest option.

WN4

Pablo Sanchez wrote: »

He made an error and admitted it, what sort of recourse would you like?

Take the idexation every year and then write to them requesting to reduce cover by the corresponding amount. However if your wary of being overinsured i wouldnt be too worried about having indexation turned off.

Your free to increase the cover whenever you wish, but this will be subject to medical evidence being provided, that might be your safest option.

The biennial premium increase to be covered for a start.

I'm concerned about being overinsured at present but that could change in the future when indexation may be required. Risking a loading / exclusion due to medical conditions acquired post-acceptance would be foolhardy.

If, as outlined above, I write to the insurer requesting a reduction of cover by the corresponding amount, would the premium revert to the pre-increase amount also?

Pablo Sanchez

WN4 wrote: »

The biennial premium increase to be covered for a start.

I'm concerned about being overinsured at present but that could change in the future when indexation may be required. Risking a loading / exclusion due to medical conditions acquired post-acceptance would be foolhardy.

If, as outlined above, I write to the insurer requesting a reduction of cover by the corresponding amount, would the premium revert to the pre-increase amount also?

Yes it should do, you are always free to reduce your cover without prejudice, and your premium would remain the same.

And dont expect the broker to pay that, he made a mistake and owned up for it. If your not happy with the service then move eleswhere, it wont change the terms and conditions of the policy you have applied for.

WN4

Pablo Sanchez wrote: »

And dont expect the broker to pay that, he made a mistake and owned up for it. If your not happy with the service then move eleswhere, it wont change the terms and conditions of the policy you have applied for.

Essentially then, the broker can provide duff information to the client, the policy is taken out on that basis and then the broker apologises and that's the end of the matter. If you don't like it then go elsewhere and potentially go through the same process again; An interesting concept.

Is there any accountability on the part of the broker?

Pablo Sanchez

WN4 wrote: »

Essentially then, the broker can provide duff information to the client, the policy is taken out on that basis and then the broker apologises and that's the end of the matter. If you don't like it then go elsewhere and potentially go through the same process again; An interesting concept.

Is there any accountability on the part of the broker?

Yes if you feel agrieved you can take a complaint initially with the broker and then escalate it with the financial services ombudsman. I presume that your complaint would be based upon miss selling of the product. You would be on shaky ground as it doosnt appear he tried to mislead you, it was an honest acident (he apologised) and you are free to cancel the policy within the 30 day cooling off period with no charge.

WN4

Pablo Sanchez wrote: »

Yes if you feel agrieved you can take a complaint initially with the broker and then escalate it with the financial services ombudsman. I presume that your complaint would be based upon miss selling of the product. You would be on shaky ground as it doosnt appear he tried to mislead you, it was an honest acident (he apologised) and you are free to cancel the policy within the 30 day cooling off period with no charge.

It was misinformation which is going to cost me more.

The policy is a year old hence this coming to light.