Frequently Asked Questions

Accident Sickness & Unemployment FAQ's

 

Below we have answered some of the typical questions we have received.

1. What's the initial exclusion?
2. The "Excess Period" understanding when you will get your first payment if you claim?
3. Will I have to accept any job when claiming on my unemployment policy?
4. Why have may premiums increased?
5. Why can't I claim for stress or back pain?

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Initial Exclusion

 

An initial exclusion normally applies to the unemployment element of your policy during a set number of days from when the policy was first started. This excludes you from making a claim during this period for unemployment or redundancy notified to you in the early days of your policy even if the unemployment occurs after the initial exclusion period has expired. Shorter initial exclusions are typically applied if you are re-mortgaging or taking out a new mortgage and they tend to be 30 days (correct as of 02 Dec 2010).

 

The duration of the initial exclusion does vary between policy and can be 0 days, 30 days 90 days 120 days and even 180 days.

 

If you are transferring cover from another provider with the same monthly benefit or less some providers will waive the initial exclusion period so that you may transfer your cover seamlessly without any interruption of protection.

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Excess Period

 

The excess period you select when you set your policy up will determine how long you will need to wait before you are eligible to make a claim, and when you will get first payment. So ensure that you understand what you need matches the excess period you select. Firstly payments are made in arrears this effectively means you wait 30 days after the excess period before you get your first payment.

 

Claim event = The date you were made unemployment or the date of your accident or when your sickness started.

 

The excess options are:-

1. 30 Days Back to Day 1 - In effect no excess is applied. You will wait 30 days after the claim event and your claim will be paid back to the first day. You will therefore get your payment in 30 days from the day of the claim event.
2. 30 day Excess - The first 30 days from the claim event you will not be entitled to any payment only after the 31st day are you eligible for payment. Your first payment will be paid 60 days after the claim event (30 days after your30 day excess).
3. 60 day Excess - The first 60 days from the claim event you will not be entitled to any payment only after the 61st day are you eligible for payment. Your first payment will be paid 90 days after the claim event (30 days after your 60 day excess).
4. 90 day Excess - The first 90 days from the claim event you will not be entitled to any payment only after the 91st day are you eligible for payment. Your first payment will be paid 120 days after the claim event (30 days after your 90 day excess).
5. 120 day Excess - The first 120 days from the claim event you will not be entitled to any payment only after the 121st day are you eligible for payment. Your first payment will be paid 150 days after the claim event (30 days after your 120 day excess).

You should also understand that if your claim is for unemployment and your receive payment in lieu of notice (effectively being paid to a future date even though your not working that period) most policies would not start the excess period until you have stopped being paid by your employer.

 

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Will I Have to Accept Any Job?

 

The terms of your policy will outline the requires that need to be meet in order to validate your claim for unemployment on an ongoing basis.

 

Most policies have a requirement that you are actively seeking work and receiving job seekers allowance or national insurance credits. Job centers usually don't cater for professional's or higher earners. In a claim you would be expected to register for job seekers and keep evidence of jobs you have applied for using agencies websites etc... The terms of your policy should not require you to take any job, however will be expected to maintain your eligibility for job seekers allowance or national insurance credits if this is specified within your policy terms.

 

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Why Have my Premiums Increased?

 

Most ASU, MPPI and PPI polices offer short-term temporary cover that renews either each month or annually. This gives the insurance company the ability to alter the terms of your cover including increasing your premium or even canceling your cover completely. To make changes to your policy however the terms and conditions on your particular cover will confirm the notice period that the insurance company are required to provide before the changes take effect.

 

Premiums are usually increased when a particular insurer has or continues to suffer higher than expected claims.

 

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Why Can't I Claim for Stress or Back Pain?

 

Most ASU, MPPI and PPI policies will typically impose standard exclusions on stress and back related claims. Those conditions maybe excluded from any claims or may require evidence to support a claim for example: evidence of a physical disorder of the back to support you claim for back pain.

You should therefore consider the policy terms paying particular attention to the exclusions and events where you cannot claim. Always look a PHI as an alternative to provide sickness and accident protection as the cover offered within a PHI policy is far superior and does not normally impose restrictions on cover or claims typically found as standard in MPPI and ASU policies.

 

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