Know Your Rights before Signing Up for a PPI

bulram | August 13, 2013

Mortgage Payment Protection Insurance or PPI, is a must for borrowers, who pledge their property for getting loan. They can buy the plan from the lending bank or separately from an insurance company. No matter from where you purchase it, it?s quite important to have an update about the terms and conditions. The detailed information will help you with PPI claim.

At the time of filing the insurance claim, you also need to submit a xerox copy of your original insurance documents. In case you don?t have it, then get in touch with your lender immediately. They will charge a nominal amount for furnishing you a duplicate copy of the same.

Terms and Conditions

Read the terms and conditions of the plan, and check if you can claim for the loss. The policies differ from each other, and so does the terms and conditions. However, the same should have been explained to you by the salesperson, at the time of selling the Insurance. If you feel that you were misinformed about the policy then it?s necessary to take appropriate step, at the right time.

Before approaching your lawyer or thinking about taking a firm step, approach your PPI Company. If you had signed up under the single insurance policy, then check if you had made any changes to it, at any point in time. As per the previous rule, the borrower had an option to combine the premium amount, with their EMI.

The benefits attached to the policy will automatically lapse, once the mortgage loan is completely repaid. If the borrower at any time, made complete or partial changes to the agreement, then he would be eligible only for partial benefits. This is one of the reasons why such policy is no longer sold to the borrowers.

Wrong Policies

Many times, Insurance companies sell wrong policy or sell one with incomplete information. The claimant doesn?t realize it, until he files for claiming the insurance amount. If you already have a policy that covers you for PPI, then you are ideally not required to apply for a new one. In case you were sold one, stating that its compulsory then you can file a complaint against the same.

As per the rules the lender has to explain the borrower about the wrong information provided to you at the time of sales made. The PPI agents earn better commission and returns, as compared to the normal insurance agents. This is one of the main reasons, why brokers tend to sell policies with improper information.

Amongst all others, one of the common complaint lodged by the insurers are that they purchased the policy because they were told that it?s important. Also, they make it sound that it is compulsory for you to buy one from the same company. If the salesperson omitted any of the details, which could have influenced your decision then you can challenge against the same.

Did not Discontinue the Policy

You review your bank statement one fine day, and realize that there is a certain amount that is deducted from your account every month. On investigating you find that it is the credit for the policy, which you had requested to be discontinued months ago. It?s your right to file a dispute against the same and get proper compensation for the loss.

Author’s Bio:

Simon Petrov is an expert on finance, and he has written many posts about?adoption and Implementation of Beneficial finance PPI claims. You could visit their website if you are looking for professional help for claiming compensations.