Shane Craig of specialist payment protection providers Paymentcare, blasts insurance trade bodies and insurers for suggesting that the rise in recent claims is all connected to the economy and that most are for unemployment.
“A skewed image is overshadowing the real value of payment protection insurance. Before the recession, 60% of claims were for accident & sickness, not unemployment. 40% of payment protection insurance claims over the past 12 months have been for accident and sickness. The threat of job loss will pass but likelihood of accident and sickness remains constant. Thousands of consumers have been saved from financial difficulty by accident and sickness protection. Borrowers who shun cover because of the recent negative associations with failed claims for unemployment could be putting themselves squarely in risk’s way. The statistics make it quite plain. PPI has protected the financial security of a huge number of borrowers who have lost their income through unpredictable accident or sickness. Protecting yourself against unemployment and redundancy is just one reason to sign up for PPI. Being unable to work because of accident or illness is something that no one can predict and can be equally financially devastating. No matter what state the UK or global economy is in, people are always going to have accidents or become unwell. If they have loan or mortgage repayments to keep up but no income, they are going to be in trouble.”
The most recent figures for annual road accident casualties stands at nearly a quarter of a million and at the end of 2008, around two million people in the UK were diagnosed with cancer – a massive rise from the previous figure of 1.2m and clearly on an upward trend.
Income protection insurance: News update: 21/05/2009