Life insurance compensation

[Shambler]

Recently found out that a life insurance company cancelled my policy. It turns out that they cancelled it due to direct debit not being paid. However it turns out due to their mistake with the direct debit I have been paying someone else’s policy for the last two and a half years.

Effectively I have unknowingly had no life insurance for the last two and a half years whilst paying for someone else’s policy.

Would I be due some sort of compensation?

[SlimRick]

The dictionary said:

compensation
kɒmpɛnˈseɪʃ(ə)n,kɒmp(ə)nˈseɪʃ(ə)n/Submit
noun
1.
something, typically money, awarded to someone in recognition of loss, suffering, or injury.

Compensation for what loss?

Did you die during these two years?

Edited by SlimRick on Thursday 16th August 09:26

[Shambler]

I should have expected the usual PH reply. The fact that if I had died there was no insurance in place. I think that’s fairly serious

[boyse7en]

SlimRick said:

Compensation for what loss?

Did you die during these two years?

Edited by SlimRick on Thursday 16th August 09:26

The loss of cover in the event he had died/been seriously injured.

However much you want to spin it he was paying for a service that wasn't being provided so should get back the premiums paid for the last two years at least

[randlemarcus]

boyse7en said:

The loss of cover in the event he had died/been seriously injured.

However much you want to spin it he was paying for a service that wasn't being provided so should get back the premiums paid for the last two years at least

That seems fair, but I'd run new quotes for your identically aged neighbour. You may find the monthly premiums have gone up since you got the original quote, and it would make more sense to ask for the policy to pretend it had always been running, i.e. getting two grand back for premiums might pale into insignificance because you'll be spending an extra four grand with the new policy.

[GT03ROB]

boyse7en said:

The loss of cover in the event he had died/been seriously injured.

However much you want to spin it he was paying for a service that wasn't being provided so should get back the premiums paid for the last two years at least

Would seem fair, but beyond that nothing.

[Rtype]

I would ask them as well to re-instate his/her premium as well.

I imagine if he bought a new policy now it certainly wouldn't be the same price. My life insurance change over 4 years has been almost 150% to purchase a new policy including cic.

I'd ask them to backdate and re-instate the policy as you are still alive and (fit and well if you have CIC?) then, yes, I would ask for compensation. Should this never have come to light this would have been an awful situation.

[GT03ROB]

Rtype said:

I would ask them as well to re-instate his/her premium as well.

I imagine if he bought a new policy now it certainly wouldn't be the same price. My life insurance change over 4 years has been almost 150% to purchase a new policy including cic.

I'd ask them to backdate and re-instate the policy as you are still alive and (fit and well if you have CIC?) then, yes, I would ask for compensation. Should this never have come to light this would have been an awful situation.

....but it did.... and if the policy is reinstated... no loss has been suffered. No loss..... no compensation.

[TwigtheWonderkid]

Shambler said:

I should have expected the usual PH reply. The fact that if I had died there was no insurance in place. I think that’s fairly serious

Surely in that event, the error would have come to light, and they'd have had to pay the claim, as they had been taking your premium.

They wouldn't have been able to say to your next of kin "sure, he was paying for life cover, and we were collecting the money, but because we allocated it to the wrong person, we aren't paying the claim." It doesn't work like that.

[Rtype]

GT03ROB said:

Rtype said:

I would ask them as well to re-instate his/her premium as well.

I imagine if he bought a new policy now it certainly wouldn't be the same price. My life insurance change over 4 years has been almost 150% to purchase a new policy including cic.

I'd ask them to backdate and re-instate the policy as you are still alive and (fit and well if you have CIC?) then, yes, I would ask for compensation. Should this never have come to light this would have been an awful situation.

....but it did.... and if the policy is reinstated... no loss has been suffered. No loss..... no compensation.

Yes, it has come to light now - but the point is, this insurance is for if you die. Yes, he hasn't died - but that's not the point of this insurance - the point is, what if he had died / gotten cancer etc, due to possible administrative faults (policy cancellation with apparent no contact) then a gross error with using his bank account to pay another persons policy.

I think he has a right to be compensated - even if it is just "We will re-instate your policy as of the incorrect cancellation date and not charge you any premiums for our error to date".

The question to ask is: How did this situation come to light op? Did you find this out, were you notified by the company?

[Shambler]

It only came to light when I contacted them to move the direct debit date.

[TwigtheWonderkid]

Shambler said:

It only came to light when I contacted them to move the direct debit date.

The stress this has caused you has probably knocked a few years off your life expectancy. Instead of compensation, you should be paying higher premiums!

[Shambler]

TwigtheWonderkid said:

Shambler said:

It only came to light when I contacted them to move the direct debit date.

The stress this has caused you has probably knocked a few years off your life expectancy. Instead of compensation, you should be paying higher premiums!

Haha thanks for that 😂