Mortgage Protection Decision Reference 2022-0291

• Case Outcome: Rejected
• Subject Matter: Mortgage Protection
• Reference: 2022-0291
• Date: 29 August 2022
• Finantial Sector: Insurance
• Conducts Complained Of: Maladministration,Rejection of claim - self-employed

Decision Ref:

2022-0291

Sector:

Insurance

Product / Service:

Mortgage Protection

Conduct(s) complained of:

Maladministration

Rejection of claim - self-employed

Outcome:

Rejected

LEGALLY BINDING DECISION OF THE FINANCIAL SERVICES AND PENSIONS OMBUDSMAN

This complaint relates to a mortgage repayment protection policy.

The Complainant’s Case

The Complainant purchased the insurance policy in 2009 and states:

“I purchased it on the basis that I was self-employed, and, if my company folded, that

the insurance company would cover my Mortgage Repayments until such time as I

would get another job”

The Complainant states that after entering the contract he was informed by the original

provider [Company A] that the policy had been sold to him in error, given that he was self -

employed. Company A sent a letter on 5 May 2009 indicating that because the policy was

sold with the knowledge that he was self-employed, it would in the future, consider a claim

on the basis of “involuntary unemployment” if the Complainant had “involuntarily stopped

trading because their business assets cannot pay its debts”. On the basis of the above letter

the Complainant states the following:

“I continued to pay this policy, and am still paying to date, confident in the fact that

[Company A], by their response letter, had given their word to honour the

contract/policy I had entered into with them, should the need arise.”