A surge in applications for payment protection insurance (PPI) as predictions of widespread redundancies across the UK jobs market has promoted standalone provider Paymentcare.co.uk to issue a warning reminding potential applicants for the cover that they must declare if they are aware of any forthcoming redundancies in their place of work.
One of the key stipulations in insurers’ literature is that applicants must declare if they are aware of any impending redundancies at the time of applying for cover.As the latest Office of National Statistics show UK unemployment rates going up, along with more claiming Jobseeker's Allowance benefit, Paymentcare.co.uk is anticipating more and more people – especially in the troubled financial services and property related sectors – looking to cover their monthly outgoings.
“One of the common criticisms of PPI is that it is hard to claim on the policy as there is so much small print waiting to trip up consumers,” said Paymentcare.co.uk managing director Shane Craig.
“But we do not believe in burying important information in the small print: it is up there on our site in black and white and in all literature sent to potential applicants.
“Under our eligibility criteria we state that you cannot be covered under our income payment protection insurance policy if, prior to the commencement of the income payment protection insurance policy, you are aware of any impending unemployment which may affect you, along with a number of other relevant criteria,” he said.
Craig added that it is an important message to get across in the current climate, given rapidly rising volumes of people looking to take out PPI – especially from troubled sectors such as banking and property and construction.
“Our cover is designed to give peace of mind – that is why so many people deem it as vital. But it is important to remember that our products are for fair weather and foul.
“Less scrupulous providers of payment protection cover may not be so keen to point out conditions which could so easily catch out panicking applicants,” he said.