Income Protection is an insurance policy that helps you financially if you can’t work due to illness or accidental injury.

Formerly known as Permanent Health Insurance (PHI), Income Protection Insurance (IPI) is available in the UK as an insurance policy to policyholders who find themselves incapacitated and unable to work due to illness or accident.

Income protection insurance policies offer a number of benefits over other accident or sickness related insurance policies including:

• The benefits include are payable when the policyholder becomes incapacitated and after the deferred period has passed and continue until the earliest of death, recovery of health, retirement or the term of the contract
• The benefits are paid regularly and are tax-free
• The insurance company cannot cancel or refuse to renew the policy all the time the policyholder continues to pay the premiums
• A waiver of premium option may be provided whereby premiums for the IPI policy are not required while benefits are being paid from the policy, but the policy cover continues as normal

If you are unfortunate enough to have to make a claim on your Insurance Protection Insurance, one of the following four definitions of ‘incapacity’ is needed for your claim to qualify:

Own occupation
Following illness or an accident the policyholder is incapacitated if he/she is unable to perform their own occupation and is not working in another job.

Suited occupation
Following illness or an accident the policyholder is incapacitated if he/she is unable to perform an occupation suitable to them given their education and training etc.

Any occupation
Following illness or an accident the policyholder is incapacitated if he/she is unable to perform any occupation at all.

Activities of daily living (ADLs)
Following illness or an accident the policyholder is incapacitated if he/she is unable to perform a number of defined functions such as dressing and undressing, washing, eating, climbing stairs, shopping, cooking etc. The policy will define the number of functions and their definitions.

Almost all Insurance Protection Insurance limit the benefit payable to a certain percentage of the policyholder’s income. The limit is usually around 70% of gross earnings.

To encourage the return to work of a policyholder recovering their health, many life offices offer to pay a reduced benefit if the policyholder takes a part time or lower-paid job after recovering their health.

The Insurance Protection Insurance policy will be only is valid while the policyholder is permanently resident in the area defined in the policy. Most policies will allow holidays and temporary residences outside of these areas.

IPI policies are classed as long-term insurance and are regulated by the Financial Services Authority (FSA) under its Insurance Conduct of Business Sourcebook (ICOBS) rules.

Figures from the Department for Transport reveals that 82 drivers under 21 were involved in fatal motorway crashes between 2006 and 2010. The aim of the new ruling is to prepare young drivers for all aspects of driving, rather than seeing them confronted with speeds of up to 70mph when they have no experience of it.

But that doesn’t mean that any learner driver is going to be let loose on the motorway – they must be accompanied by a qualified driving instructor. So if you’re teaching your teenager to drive, you still can’t take them out on the motorway. At the moment, some Car Insurance policies can cover a driver with a provisional driving licence, but this wouldn’t be valid for motorway driving. Always check to make sure any learner driver you take out is covered by Car Insurance, or better still, leave it to the professionals and invest in proper lessons for them.

Motorway driving for learners won’t be a compulsory measure, as it would be difficult for drivers who live in a remote area to find a motorway close enough to where they live. But it’s hoped that it will cut the number of young drivers who are killed or seriously injured on motorways, as they’ll be more prepared for this kind of driving once they’ve passed their test.

Although learner drivers might feel daunted by their first trip on a motorway, the theory is that it’s better for them to tackle it with an experienced driving instructor rather than with a group of friends shortly after they’ve passed their test.

They’ll be given the opportunity to learn vital skills such as how to use the slip road properly, how to overtake safely and how to measure safe stopping distances. These are things that come as second nature to more experienced drivers, but are all new to someone who’s only just passed their test.

A spokesperson from The Institute of Advance Motorists welcomed the move**, saying: “It will mean that properly supervised young drivers can learn how to drive on a motorway with somebody beside them. These roads are, after all, our safest roads.”

[*] – Department of Transport (www.dft.gov.uk)
[**] – Institute of Advance Motorists (www.iam.org.uk)

Company Profile:

John Lewis Insurance offers a range of insurance services selected by the John Lewis Partnership. These include home, life, pet, travel, wedding, event and car insurance quotes.

For more information about John Lewis Car Insurance please click here.

The motor insurance industry has come under scrutiny for this possible malpractice and the OFT investigation will try to resolve how widespread this practise is within the industry.

The concern is that insurers are stoking up prices by selling details of their policy holders’ accidents to no-win, no-fee solicitors. If like me you have been unfortunate enough to be involved in an car accident in the past couple of years, the likelihood of you receiving a call out of the blue or more likely a text from an unknown source days after reporting an accident to your car insurers, suggests this malpractice is writhe in the motor insurance industry.

Fortunately, I was only involved in a minor traffic accident with no casualties and I was nothing more than shaken up by the experience.  But imagine a worst case scenario whereby you find yourself having to deal with offers to win compensation when you are grieving.

Furthermore, the OFT are also investigating the cost of motor accident repairs and courtesy replacement cars.

Insurance companies recommend car accident and car hire supplier.  In my case, the accident repair garage my insurer recommended was a Mercedes garage, 10 miles away from my home.  As my car is a Honda Accord, and I have a good relationship with my local Honda dealer, I questioned how this could be better for me and cheaper for the insurance company.  I wasn’t given an answer, just told that it would delay repairs to my vehicle if they had to send a representative out to inspect the damage and approve an ‘independent quote’.

It is alleged that some “approved” garages also pay referral fees to insurers too.  In exchange, the insurers stipulate expensive paint and parts and even higher labour costs. The costs of which is paid for, and helps to justify, higher car insurance premiums.

Sonya Branch of the OFT said:

“Our concerns relate to the provision of third party vehicle repairs and credit hire replacement vehicles to claimants, where we suspect companies may be competing to extract money from each other rather than keeping premiums as low as possible and providing car owners with value for money.”

Preliminary findings by the OFT strongly suggests there is a correlation between referral-fees and the actual rise of car insurance over the past 12-24 months.

For many of us who rely on our cars whether they be a two-seater Smart car or 7 seater 4×4 there is no alternative than to shop around for the best deal and look to be rewarded by a no-claims bonus or insuring two or more vehicles at the same address. But it is a comforting thought that the OFT are at least looking to tackling such irregularities in the motor insurance industry.

If a company is unwilling or unable to continue making contributions to a scheme because it cannot afford the contributions or because a merger has taken place and budgeting changes, the regular trustees will most likely be the ones to deal with the long process of winding up. However, if a company has become insolvent, more often than not independent trustees will be appointed, alongside the regular trustees. This is because under insolvency law, the insolvency practitioner in charge of dealing with a company’s administration must inform the Pensions Regulator where there is a scheme to be wound up.

The Pensions Regulator appoints independent trustees (usually companies, rather than individuals) to take care of all discretionary matters, alongside the original trustees of the scheme who will no longer make discretionary or judgement calls, but only assist with the smooth administration of the pension scheme as it is wound up. The trustees will be independent if they have no ties with the company, and no vested interest as to who the final pay outs of the trust are made to.

Trustees wind up a pension scheme by investigating how the investments and assets of the scheme have been managed, in order to determine what will become available to the beneficiaries of the trust (such as the employees of a pension scheme). Having assessed the situation, the trustees will move to ‘realise the value’ of trust property by selling off remaining property, and maintaining the profits throughout the winding up process by investing them. Investments made during this time will low risk, in order that no further losses are incurred.

The most recognisable part of all this will be the final pay outs of the pension scheme to members, in line with whatever rules were established to govern what beneficiaries receive when the trust was set up. It is the trustees’ duty to follow these rules as closely as they can, however difficult the circumstances and whatever the value of the assets remaining. In practice this will often mean that a priority order is followed, whereby members are paid in turn based on what kind of voluntary contributions they made or how they participated in the scheme.

It is worth noting however that further payments may be available notwithstanding the specific trust constitution, which the trustees can take into account under statute. These payments are made by the Pension Protection Fund to compensate and protect employees who contributed to pension schemes which eventually fail. This is particularly important in cases where a scheme was underfunded up until insolvency. Contributions to ill health pensions and survivors’ pensions for example are protected up to certain limited percentages of the policy’s value.

Most people take tablets at one time or another for a medical condition.  Figures estimate that more than 2.8 million people in the UK have diabetes, half of all the people in the UK over 65 have high blood pressure ( hypertension) and two thirds of the UK population aged over 40 are said to have high cholesterol levels.  For most people, taking tablets for these conditions is a daily ritual and of no great importance, but even if the medical condition is under control and the symptoms are not problematic, the condition may still need to be declared when taking out travel insurance.  Taking out travel insurance with medical conditions covered should be considered essential if there is the slightest chance that the condition could cause a problem when travelling.

Travel insurance policies can be nothing more than an expensive piece of paper, that is, until a holiday maker experiences difficulties abroad bought on by a condition that has gone undeclared to their underwriter.  Not all medical conditions can be covered.  If the risk is deemed to high for an insurance underwriter, the traveller with the condition will need to assess the pros and cons of travelling without medical cover and the consequences of hospital treatment abroad, against the prospect of not being able to take a holiday.

Travel insurance companies will not all have the same rules regarding medical conditions.  Some will expect only a 12 month period in which there are no symptoms, treatments or consultations before they consider that person to be free of an existing condition whilst others will extend that period to 24 months and more.  Some of the cheap travel insurance on offer will also cover medical conditions; it is not necessarily true that the extra endorsement needs to be prohibitive, the cost of medical care if the condition has not been covered, can be enormous.

Importantly, a lay trustee is a trustee in their own time and not in a full-time capacity. This in itself can raise its own problems. In addition to the commitment required, which is not always possible with a full-time job, there is the problem of conflicts of interest within a committee, the issue of vested interest (with certain members also being beneficiaries of the scheme) and the changing requirements of pension schemes.

As a result, many companies are now supplementing their lay committee by calling on independent trustees. Working as an independent agent, these trustees are able to mitigate any potential conflict and dedicate the equivalent of full-time effort to the scheme.

Pensions are changing. In the face of the current crisis, there is an increased emphasis on governance. As independent trustees work for a range of schemes, their expertise is market-led and therefore can be easily suited to each individual scheme. With the UK pensions crisis rumbling and the possibility of extra benefit bills running into hundreds of billions of pounds, such independent and impartial advice could be extremely beneficial for schemes looking to keep their heads above water.

What do I need to know?

By statute, all trustees fulfilling particular legislative conditions must be listed under the Independent Trustee Register – if you or your pension scheme has chosen to seek professional counsel from an independent trustee it is essential that you check they are on this list. This way you ensure that the trustee elected does the job according to the standards they are required, by legislation, to meet.

They should:

• Be fully up to date with all pensions issues, as well as any changes in legislation which affect pension schemes
• Work primarily with the interest of scheme members in mind
• Demonstrate an appropriate level of expert knowledge and understanding
• Be alert to cost and risk control
• Be able to identify the appropriate sources of professional advice in terms of compliance with legislation and scheme administration

Independent trustees can act alongside an existing committee of lay trustees, or take over the role of sole trustee. It is important to consider the advantages and disadvantages of each route for the particular scheme.
What are the benefits?

The benefits will depend to some extent on the role the trustee will take: it will be the company’s decision whether they are being employed into an executive or supporting role. Either way, however, there are some benefits that remain universal. These are:

• Impartiality: where conflicts of interest arise, it is the trustee’s job to mitigate and to ensure that all decisions are made on the basis of the members’ benefits.
• Transparency: due to the impartiality of the trustee, issues such as scheme investment or agreeing on the employer’s and members’ contribution rates are made with the advancement of the scheme in mind.
• Confidence: with a professional independent agent acting according to regulations set out by the Pensions Regulator, members can rest assured that their schemes are being governed fairly, professionally and according to best practice in governance.

Independent Trustees – A Changing Role

It was quite usual not so long ago to recruit independent trustees on the ‘nod-and-a-wink’ recommendation of a friendly pension fund professional. But not now. Several major scandals during the latter-half of the 20th century helped change the pensions landscape forever and shaped the role of the trustee that we see today.

As a consequence of these scandals – the Robert Maxwell scandal of 1991 is probably the most famous example in the UK – and companies, facing a pensions ‘black hole’ because of poorer-than-expected investment returns, being unable to pay employees what they once promised, all funds now paid into a medium or large company’s pension scheme must be held in trust.

This legal requirement not only prevents business owners helping themselves to pension scheme money whenever they want, but it also stops the pension fund counting as a business asset which might then be at risk if the company fails.

Small companies can also employ trusts to look after their pension schemes. But they don’t have to if they don’t wish it. Instead, they can choose to run a GPP, a group money-purchase personal pension scheme, which requires a pensions adviser and an administrator only and not the appointment of independent trustees.

The role of the trust is simple, to administer and protect the company pension fund and thus enable it to grow in value. It is independent of the company and the pinnacle of a triangle, with employer and employees forming the other two points.

All sides of the triangle need to work together to successfully achieve the pension fund’s primary goal, which is to ensure money moves from employee to employer pension scheme and then eventually back again to the beneficiary, the retired employee.

The job of the trustee is a demanding one at the best of times and now requires a degree of knowledge and understanding unknown in the past. The trustee can be either a lay person, a paid professional, or even a company – known as a corporate trustee. The corporate trustee will usually be the director, with the same responsibilities as an individual trustee. The pension scheme’s employer can also be the corporate trustee.

Often an individual trustee will be just one of a number of trustees looking after the pension scheme. If that is the case, the group is known as the board of trustees. Anyone is eligible to become a trustee provided they fulfil a few basic requirements.

Trustees must be aged 18 or over and be legally capable of holding property. They cannot have a conviction for an offence involving dishonesty or deception (unless it is spent) or be an undischarged bankrupt or have voluntary agreements with creditors.

Independent trustees must not be disqualified from acting as a company director, or have property in Scotland covered by a sequestration order. They cannot be a trustee if they are a company which already has one of its directors disqualified from being a trustee. The same applies with a Scottish partnership where any of the partners have been disqualified from being a trustee.

Motorists have been among the worst affected throughout the economic crisis, between the oil producers and government fuel duty we have recently witnessed fuel prices escalating to over the £6 per gallon barrier.

The latest budget news deferring the anticipated fuel duty increase in April was expected by most and does little to quell the anger of motorists parting with half their wages to fill up their vehicles.

Motor insurance premiums have risen on average by 31% over 2010 figures and could be set to rise further still in the light of the recent EU ruling stating that insurance companies cannot treat male and female drivers differently when supplying motor insurance products.

The latest reports from the insurance industry suggest that buying home insurance is likely to cost us more than last year, although it has to be said that the average rise of 6% in this market is a little more palatable than the huge increase in motor policies.

Reports suggest that a typical average premium for buildings and contents insurance has risen from £142 last year to £151 in 2011, not a great deal, but still an extra expense that most of us could do without in the current climate.

It appears that insurers are keen to recoup the cost of claims made during the freezing winter weather last year, but with extreme and severe weather in the UK becoming a trend, the costs of insuring our homes is set to increase indefinitely.

Another area that has been attributed to the rise in premiums is fraudulent claims which appear to increase in times of recession, one insurer claiming that these claims cost each of us £44 on our annual premium.

There are of course various websites available that compare home insurance products and we would highly recommend that you shop around for the best deals available.

The majority of insurance companies prefer to insure both buildings and contents in one package and will offer a reasonable discount when these two products are bought together.

If you are about to replace an existing policy it is a good idea to have your previous documents available when checking out alternative insurers, this will enable you to compare services and premiums on a like for like basis and give peace of mind that you are at least getting the same cover as previously held.

Making sure you have the correct home insurance for your property is just, if not more, vital in your later years. You may be able to afford to pay more for your policy compared to when you set your first step on the property ladder as a first time buyer, but at the same time you are likely to have more to protect.

Taking out home insurance with a company such as Castle Cover who tailor their policies to the needs of individuals like you, could help your more adequately protect both the possessions you have amassed and the time and effort you have put into your home. Specialist insurers recognise that mature homeowners are often more careful than their younger counterparts and as such they offer competitive pricing as a reward. They also able to provide a high level of cover for both your contents and buildings insurance in recognition of all the hard work you have put into establishing your home and developing its value.

When you are taking out insurance be sure to account for possessions old and new.  Alongside new treasures like in-house technology such as laptops, flat screen TVs and PCs, make sure you account for any family heirlooms, antiques or collectables and have them valued if necessary.

Always ensure your home insurance policy covers all the basics such as flood, storm damage, water leaks and theft and consider any policy extras you might require too. If you spend a lot of time and money in your garden relaxing and gardening you may want to consider adding extras to your policy to protect the external parts of your home such as plants, shrubs and garden shed. After all – they all work together to make up the life you live in your home.

Whether your most valuable asset is a house and its furnishings; an inheritance of family jewellery; a painstakingly assembled collection of art or antiques; or simply a sheer volume of clothes, electronics, and furniture, if the total worth of your valuables exceeds £40,000 then it may be prudent to consider high net worth insurance.

The inheritance
Inherited items are easily undervalued since they may go entirely unused in an attic or cellar, being either considered sentimental in value or too good for daily use, yet worth a significant amount of money. Sometimes it is not until an inherited item is lost or damaged that its true worth is revealed: for example, consider a piece of furniture or art that becomes damaged and requires professional restoration.

When it is taken to the professionals, it is accurately valued far beyond what you had anticipated. At this stage you discover that your regular insurance plan does not cover replacement or restoration of an item of this value, and you are left either to foot the bill yourself or go home with a damaged item. If you have goods in your home that may fit into this category, it is possible that high net worth insurance will best fit your needs.

The collection
The time and energy involved in amassing a collection of fine art or antiques is invaluable, but the art and antiques themselves can be valued at a price that regular insurance generally will not cover. No insurance payout could ease the blow of losing any portion of a collection through theft, flood, fire, or accident, but the injury could easily be exacerbated by the insult of going without the funds to begin again. High net worth insurance is designed for those with specialist items in their homes and can often include an agreement tailored to the individual’s collection.

The home itself
For most of us, the most valuable thing we own is the house that we live in. If the cost of rebuilding your home is around £200,000 or more then, again, high net worth insurance may protect your assets better than another insurance plan. Equally if your home has some unique feature like a thatched roof, damage and maintenance associated with that may not be covered by traditional home insurance.

Whereas the majority of solicitors have a legal team dedicated to personal injury claims and services, far fewer firms specialise in specific areas.

Unless you have regular dealings with a firm of solicitors or a recommendation from a reliable source, choosing the right solicitor is a very important part of the decision-making process when making any personal claim.

A good solicitors website should offer free advice on a variety of questions that may well be central to your considering starting a claim procedure – who will pay your legal fees, how to choose the right solicitor and how long do you have to decide whether to start a claim.

In times like these it’s fair to say that businesses in all sectors look to branch out and offer other services that they may not have the necessary experience or expertise.  Like I.T companies, solicitors can offer a wide range of services but a company website can sometimes offer a clue as to where their core expertise lies.

I see many I.T company websites that promote themselves as offering I.T support, networking, server management, computer repairs and right at the bottom of the list, lost in comparison with the other services… and website design.  If this doesn’t prove they are I.T experts rather than web designers then their own website and portfolio generally underlines more initial thoughts; and solicitors’ websites can be read in much the same way.

It will either list absolutely every conceivable service a firm of solicitors can offer, in which case you will want to the reassurance that this company is large enough to have an experienced department in every field or you want the reassurance that the solicitors you choose are suited to requirements.  In the case of medical negligence, it is vital that the solicitors you choose to represent you, is a company that specialise in this niche field.

Medical negligence claims can be very time-consuming and involved.  It is therefore crucial for you to have full confidence in the experience and expertise of the lawyer or lawyers that are in charge of your claim.

Goodmans Law are a firm of solicitors that specialise in medical negligence and personal injury claims. Their website clearly highlights their areas of expertise and as such should give you peace of mind.