Common exclusions on PPI policies
Payment protection insurance, or PPI as it is often called, is a special type of insurance. It allows you to be covered for various scenarios in which you cannot work, giving you a monthly payment with which you can pay off your existing credit card, or other loan payments. As with all insurance policies, however, there are very strict rules about the conditions under which you can apply for a pay out.
The most common kinds of insurance policies are those that cover damages to people, or damages to property, meaning that the exclusion clauses just specify what kind of damage is liable for a claim. Insurance on buildings, for example, often does not cover for flood damage. PPI insurance, however, because it is quite different, will have to have very different exclusions. What follows is a look at the two most common exclusions for PPI.
Perhaps the most common exclusion is the fact that mental illness is often not included in PPI policies. Though they will often cover for illness in general, this, more often than not, does not cover for psychological ailments. There have been countless cases where people have lost their jobs due to stress, or some other mental illness, and have not been able to claim any money for it.
Now that we have a better understanding of mental illness, I see no reason why it should not always be included under the umbrella term ‘illness’, but unfortunately, it is often not. It is the claimant’s responsibility, therefore, to be extra careful when applying for PPI policies, so that they make sure that mental illness, like stress or depression, is covered.
One other common exclusion clause is that which blocks people who have worked in other countries from claiming. It is often out of people’s control where they work, and so they often have to travel abroad to find the job they want. However, many PPI policies have refused people in the past because, while under the PPI policy, they spent time working abroad.
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