Farm Ireland
Independent.ie

Thursday 22 February 2018

Moynihan calls for probe into selling of insurance policies

Darragh McCullough

Darragh McCullough

An investigation into the selling of inappropriate income insurance policies to farmers has been demanded by Fianna Fail's agriculture spokesman, Michael Moynihan.

Deputy Moynihan claims that thousands of farmers have been sold payment protection insurance cover on loans that they were never eligible to claim because of their self-employed status.

The Cork North West TD has written to the Financial Ombudsman calling for an investigation into the issue.

"The Financial Ombudsman should consider a new compensation package for those farmers who have been diligently paying income protection insurance on their loans over an extended period, under the legitimate expectation that they would be able to draw this down if required," he said.

complaints

In 2011, the Financial Ombudsman received more than 400 complaints regarding income protection policies.

A spokesman said that payment protection insurance was a regular complaint over the past 10 years but that it was up to each individual to make their case to the Ombudsman's office.

Deputy Moynihan said that he is dealing with a number of farmers who are in financial difficulty and have failed to qualify for insurance payouts because they were sold the wrong product.

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"This is despite the fact that they have paid extra on their loan repayments for months, and in some cases years, in order to have this safety net if they ever needed it," he said.

"I have also asked the Financial Ombudsman to set out measures to ensure that this misleading selling can never happen again."

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