View more on these topics

Why won&#39t they pay out this permanent claim?

I want to tell you about a client of mine of some 18 years. My client saved regularly and strived to better his standard of living and look after his family.

He had worked as a full-time employee with an exemplary attendance record since leaving school and also ran his own self-employed business with the help of his family.

He suffered a bad injury in 1994 due to a car accident and has not worked since. He has spinal injuries and psychological problems that suggest he will not be able to work again.A senior consultant examined him during the period after his accident. He felt he could do nothing further for my client and signed him off.

The adjudicators on the panel of the DSS awarded him disability for life benefit and his own GP, with whom he has been in constant contact, recognises it is unlikely that my client will ever be able to work again. His employer terminated his employment on the grounds of ill health.

My gripe is with Axa Equity & Law – with whom I have placed much business over the years – who have been very unsympathetic and unreasonable in connection with my client&#39s life care claim for permanent and total disability.

My client has life and critical-illness cover and waiver of premium. Premiums are still being waived for my client but Axa Equity & Law have recently declined to pay £20,000 for a permanent and total disability claim – nearly seven years after the accident.

My client is aged 39.Axa Equity & Law state that “permanent disability is such that it prevents or will prevent my client from carrying on any gainful occupation at any time during his lifetime”.

They also state that my client must provide satisfactory medical evidence that demonstrates his condition will permanently prevent him from ever being able to perform any gainful employment.

For this purpose, they quote “permanent” as meaning beyond the hope of recovery with current medical knowledge and technology.

I am very disappointed with Axa Equity & Law regarding their position. I sold the policy in good faith to a client who diligently kept his part of the contract and has had his earning capability cut short through no fault of his own. I wrote to Axa Equity & Law to let them know the type of person my client is but to no avail.

I wonder over what length of time they may realise that my client will never be able to work again?

It leaves me very perplexed and reluctant to carry on promoting critical-illness cover if companies who are only too happy to accept business fail to look after the deserving people who have put their trust and faith in them.

I can only sympathise with my client and suggest that Axa Equity & Law have not come out of this very well at all in my eyes – and certainly not in those of my client.

Paul Wearden

Fernleigh Wearden & Co, Preston


iShares trust in telecoms

iShares has added the iBloomberg European telecoms fund to its range of European sector-based exchange traded funds.Exchange traded funds are still a novel idea in the UK, although they have existed in the US for the past eight years. They have the liquidity of shares in that they can be traded on the stock exchange. […]

Product Matters

Focus funds are the new buzzwordsas launches from groups such as Gartmore, ABN, Merrills, Lazards and now R&SA testify.They are a reaction against the craze in benchmark funds that have come to dominate much of the industry.It was the trackers&#39 success that caused many funds to hug closely to their benchmarks. But many have failed […]

Industry and CA clash over Catmarked advice

The IFA sector has hit out against Treasury proposals to Catmark financial advice while the Consumers&#39 Association has broadly welcomed a quality standard.The ABI has warned that introducing a Cat standard for advice would be wrong, with more work needed on the objectives and scope and the role of the Government and regulator.In its paper, […]

Marsden fixes for five

Marsden Building Society has brought in the five year fixed rate mortgage.Available for both first time buyers and people looking to remortgage their homes, the mortgage has a fixed rate of 5.75 per cent for the first five years for loans of up to 90 per cent of valuation.The Marsden mortgage comes with £250 cashback […]

Martin Foden discusses how convenience is affecting the construction of fixed income portfolios

In this short video, Martin Foden, head of credit research at Royal London Asset Management, discusses how convenience is affecting the construction of fixed income portfolios. Watch the video in full The value of investments and the income from them is not guaranteed and may go down as well as up and investors may not […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm