For anyone with any form of credit – be it a loan or mortgage, they may also have taken out PPI. Such policies were drafted to help borrowers who find themselves unable to work by meeting their monthly payment obligations.. This in fine in theory, although in practice many of PPI insurance policies contain exclusion clauses that prevent people from making successful claims. Having insurance is useful, but we need to be clear about what type of cover we have and whether in fact we will be covered in time of need.. Many people are discovering that they have been sold a policy that is not cheap and also not flexible? If you terminate your loan prematurely, you will discover that you may only be entitled to a limited amount of the premiums back as a refund. Customers must be refunded, but since a large part of a single premium policy is paid up at the outset of the loan, the refund can often by limited. It gets added to the loan and interest is paid on the policy. If you ever go to pay the loan off early, you will find that you may only be entitled to a limited amount of the premiums back as a refund. The claim may be denied if the borrower was aware of a medical condition they had.. Those who were not provided with the clear facts about the policy have a good claim for compensation. Customers should have been made aware of the full facts of the policy. A large number of lenders have not done so. For the reasons stated above, many people are now considering compensation claims. Normally, customers can get back what they have paid into the policy, plus statutory interest. Given the amount of premiums that are paid into these policies, any compensation award is likely to be quite high. Consumers who do not have the time and energy to start and manage the complaints process themselves can get in touch with a claims management company who will deal with the whole affair on their behalf, usually on a no win no fee basis. Many lenders failed to do so. This has opened the floodgates for a large number of compensation claims. Typically, customers can get back what they have paid into the policy, plus statutory interest. Given that people are regularly paying several hundred pounds a year into these policies, the compensation amount that can be claimed can be quite considerable. Customers who do not have the time and inclination to initiate and manage the complaints process themselves can get in touch with a claims company who will deal with the entire affair on their behalf, usually on a no win no fee basis.