Hi, welcome to Just Answer. I will help you with your question.
Yes, you would have a claim against the PI policy, but you may not need to go down that road.
You could potentially bring a claim against the Financial Services Compensation Scheme - the website is here for your information: http://www.fscs.org.uk
They provide cover in respect of all regulated firms that go into a formal insolvency procedure.
But, if for whatever reason you couldn't use the FSCS (which is unlikely) then you would have rights against the insurer pursuant to the Third Parties (Rights Against Insurers) Act 2010.
Thank-you for your advice. My issue is that my claim is for £250,000 and my understanding is that the maximum pay-out from the FSCS is only £50,000. so my preference is to only use the FSCS as a last resort. for the PI insurer first and then to refer the matter to the FSCS if this fails. Are there any risks with this approach?
OK, then yes, you're able to go against the insurer directly.
And no, no risk with that approach.
I hope this answers your question. If you need further information, just let me know. Please do remember to rate my answer as highly as you can.
Does the PI insurer have a legal responsibility to reimburse me for my losses? If so, what do i need to do to prove mis-selling. I am currently having my case reviewed by the Financial Ombudsman. After 4 months of looking into my case they have indicated today that whilst they believe their is evidance of mis-selling i should nevertheless consider refering my case to the fscs because any award that the FO could make would be against the company and not the insurers of the company and may therefore be unenforceable. I do not understand this as i thought that if i could get an award against the company that their insurers would have to pay up. This is the initial opinion of the adjudicator and i do have the option to ask that my case be refered to the Ombudsman for a second opinion. What is your view and do you have any experience of somebody receiving an award by the FO against a company and then being paid out by the companies insurers?
If i am forced to go down the FCSC route could i break my claim up into 5 separate claims against the company as they did sell me 5 individual products over a 18 month period. Or do i have to consolidate them into one claim? If i could do the former then i might be able to recoup the majority of my losses and not be constrained to a maximum compenstaion of £50,000
The insurer has a liability to pay you if the basis of your claim was insured by the firm.
You would need to prove the claim against the company before you can claim against the insurer - you still need to prove your claim.
However, the ombudsman is a good start to this, as he/she will effectively help you do this.
And hopefully, the insurer will just pay out when the ombudsman makes findings in your favout.
It depends on the award by the ombudsman and how he reaches his conclusion as to whether payment has to be made.
The ombudsman's findings wouldn't force the insurer to pay out - it's entitled to fight you in Court if needs be on the same grounds as the ombudsman might rule, but hopefully, it would consider the ombudsman's ruling sufficient just to pay out.