I was sold PPI, but I was self employed – can I claim my PPI back ?
07 November 2011
PPI (Payment Protection Insurance) was sold alongside loans, credit cards, mortgages, car finance, hire purchase etc in order to cover your monthly payments during periods of absence from work following accident, sickness or redundancy. A lot of the major banks such as Alliance & Leicester, Lloyds, Halifax, Co-Operative, Barclays etc sold the insurance to people who did not require it.
There were many reasons why PPI was unsuitable. People were pushed into taking the insurance out because the banks made massive profits from the sale of the policies. The insurance was also dramatically expensive and overpriced which fuelled anger and pushed people to make compensation claims about their mis sold PPI.
One of the main reasons why PPI received such a bad press and one of the main allegations which is made by ppi solicitors and claims management companies is that people who were self employed were severely restricted by the terms of the policy.
It is worth mentioning that if you are a director of a company or a partner in a firm, it may well be the case that you simply do not require any cover because your business could continue irrespective of whether you are present on a day to day basis. Whilst it may be the case that your absence from your business may cause some challenges, it is unlikely that you would suffer a significant reduction in profits or operations as you are likely to have colleagues / partners who could continue running the business until you return from leave.
Otherwise, if you did make a claim on the policy, it may well be the case that it wont pay out because the insurance company would need you to prove that you not being present at the business would significantly affect the day to day working of the company. Additionally, if you make a claim under the ‘unemployment’ part of the policy, you would usually have to prove that the decline of your business was industry wide rather than something only affecting your particular company.
If you do have a PPI policy on a loan or credit card and you are self employed, make sure you review your cover regularly to ensure the insurance is suitable for you.
If you do wish to make a PPI claim, get a PPI claim form, make sure you research how to claim back PPI and check a PPI calculator to see how much compensation you may be due.