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Scotland Wide PPI Specialists

Is PPI Still A Valid Policy?

05 January 2015

Payment protection insurance (PPI) as a policy has taken a real bashing in the UK in recent years and no surprise, being in the middle of the biggest banking scandal to have ever hit the UK banking industry.

But, opinion as to whether PPI is still a valid policy in today's modern world are divided; should you be looking at PPI or something else to help cover repayments in the event your income stops or falls?

Some critics say that PPI still has its place in a lost list of insurance available for the consumer to purchase but, there are a few things you need to consider…


PPI is seen as an expensive insurance in many cases, considering the cover that it can offer and this was one of the main arguments to do with the mis-selling of PPI and the subsequent claim for compensation.

In fact, a main criticism of the banks over the whole saga was the cost of the policy they were selling their consumers; some PPI policies added an extraordinary amount to people's debt. Like all insurances, it pays to shop around, something you could have done with the PPI you were sold by your bank, but they may have told you different.


The amount of cover included in the policy should be reflected in the price and again, this was something that was not apparent during the mis-selling of PPI to customers.

The PPI policies offered by the banks included very little cover, with the terms and conditions being narrow. For this reason, people who thought they were covered found out, to their detriment that they weren't.

It goes without saying that the more cover your opt for with PPI, the more expensive it will be. For example, adding redundancy cover to a policy will instantly inflate the monthly premium, as well as opting for coverage for a specific and exiting medical condition.

Pay-out rate

As with all insurances, you should also actually check what the pay-out rate is for the particular policy. After the debacle of the mis-selling of PPI, consumer groups found that successful pay-outs on PPI policies the banks were selling were only successful in 15% of cases.

Other insurances first

However, there are some insurances that are 'compulsory' or must-have and, unless you have a particular reason why you need to protect payments on a certain loan or credit account, then you may be better buying these other policies first.

If you are unsure, seek the advice of an independent financial adviser before making any big decisions - and call Scottish PPI Claims to help you get your PPI compensation!