Mortgage protection claim delay - why and what can I do?

[DiamondJoe]

I took out mortgage protection insurance a few months ago - an "I protect" plan with Wessex Group. I was made redundant on 6th April, and I made the claim the next day. My policy states the waiting period is 30 days and the initial exclusion period is 60 days (which I'm outside of). They requested all the usual bumf (redundancy letter, p60, evidence of job seeking etc) but I've now had a letter saying that they have appointed someone called RPS associates to interview me "in respect of my claim". Apparently I need to allow 2 hours for the interview and supply bank statements, wage slips, p45 etc (most of which they've already got). The issue is that they say they can't see me until 10th June, which will mean that I will miss May's mortgage payment as the insurance wont have kicked in.

Can they do this? Isn't the whole point of getting insurance to make sure you don't miss a payment? Rather than a 30 day period, that will make it nearly 70 days before they even make the decision. Is there anything I can do about this? And why are they doing this?

[Guest]

Re: Mortgage protection claim delay - why and what can I do?

RPS Associates are a claim validation and review service. Their website is here (and whoever wrote it clearly has a sticky Caps Lock key.) index.html

RPS have been appointed to assess the validity of your claim and they will have been instructed as you only took out the insurance recently and have since made a claim. Recent figures (from April 2009) provided by the Association of British Insurers have reported a 30% increase in fraudulent insurance claims on the previous year.

To appoint such a service will be company policy and the details will doubtless be contained within the terms of your insurance policy.

I do not believe it is anything to worry about, provided that your claim is genuine, but I do understand your concern, in particular regarding the missed mortgage payment.

I would write to your lender and inform them of your situation and let them know not to expect a payment in May since the company they have appointed cannot see you until June. You should also point out, if you feel so inclined, that you do not care for their allusion regarding the validity of your claim.

[Celestine]

Re: Mortgage protection claim delay - why and what can I do?

It might be worth contacting your mortgage provider to see if you are eligible for a mortgage 'holiday'??
They will not pay out until they are satisfied you have a valid claim.
A friend of mine had Mortgage Protection, he got fired from his job (unfairly) but had to wait over 9 months till he'd proven his job loss was through unfair dismissal via an employment tribunal. Only then did his protection insurance pay out ...... by which time he was in serious arrears.
Also, are you on an interest only mortgage, if not, ask your mortgage provider if you can switch to interest only payments; which would reduce your monthly payments a bit.
Best of luck.

[scoobydoo]

Re: Mortgage protection claim delay - why and what can I do?

I agree with all of the above. I guess they will be trying to establish if you had any reason to think your job was`at risk when you took out the insurance. I agree the delay is unfortunate but hopefully your mortgage company will be sympathetic.

[drmuddle]

Re: Mortgage protection claim delay - why and what can I do?

Hi, i know its been a while but did all go ok with RPS?

[drmuddle]

Re: Mortgage protection claim delay - why and what can I do?

Has anyone else been interviewed by RPS Associates with regards to income protection insurance?

[debminster]

Hey DrMuddle / Diamondje

I know its been long however may i ask how did it go with RPS ? what was the outcome ?
I have been invited to an interview and have no clue what it is about even though they have asked for extenstive paperwork even bank statements going up to a year

Many thanks !!