Firms mis-calculating income protection benefit - Fos

The Fos says in some of the disputes it sees involving income protection policies, policyholders are unhappy with the amount of benefit they receive after successfully submitting a claim. Often the problem stems from the policyholder’s misunderstanding about how the policy works, but sometimes the firm has calculated the benefit incorrectly. If the Fos is satisfied the calculation is correct, it may examine the advice the firm gave at the time it sold the policy and, in particular, it will look at whether the policyholder was over- or under-insured. It will also examine any fact find ...