Payment protection insurance (PPI)
What you need to know about payment protection insurance
Payment protection insurance (PPI) helps cover your loan or credit repayments if you cannot work for specific reasons, depending on your policy. This page explains when PPI is available in Ireland, who may not be eligible to claim, what exclusions apply and what to do if you need to make a claim or want to cancel an existing policy.
What is payment protection insurance?
Payment protection insurance (PPI) is a type of cover that helps you meet your monthly repayments on mortgages, loans, credit cards, store cards or catalogue payments if you are unable to work. This may be due to illness, accident, death or unemployment, depending on your policy.
Is payment protection insurance available in Ireland?
PPI is not readily available in Ireland today, with very few financial institutions offering it. If you are considering this type of cover, check with your insurance provider to find out if it is an option, and make sure you read and understand the terms and conditions.
Under the Central Bank’s Consumer Protection Code, providers (and lenders who sell PPI) must clearly explain all terms, exclusions and conditions, and ensure the product is suitable for you. If they don’t, you could later find you’re unable to claim – for example, if an exclusion applies or a condition isn’t met – leaving you without the cover you expected.
Who is not eligible to claim on a PPI policy?
You may not be able to make a claim if you are:
- Under 18 or over 65
- Employed for less than 16 hours a week
- Aware you may become unemployed
- Self-employed and go out of business
- A temporary or contract worker who loses their job
- Aware of an existing medical condition
- Unable to work due to certain common conditions, such as stress or backache
You may also be unable to claim for redundancy if you:
- Work in a family business
- Take voluntary redundancy
- Claim during the first three or six months of taking out the policy
How do you make a claim under an existing PPI policy?
If you are out of work due to illness, injury, or unemployment and have a payment protection insurance policy, follow these steps:
- Check your policy: Review your policy document to confirm whether your situation is covered. For example, some illnesses or voluntary redundancy may not be included.
- Speak to your lender: Contact your lender to discuss the next steps. You may need to complete a claims form. Fill out all forms as accurately as possible to avoid delays or refusal.
- Get your paperwork in order: You may be required to submit supporting documents, such as medical certificates, medical assessments or proof of redundancy. Your lender will advise what is needed.
Can you cancel a PPI policy?
You can cancel payment protection insurance at any time. If you pay off your loan or hire-purchase agreement early, cancel your credit card or simply decide you no longer need this cover, ask your lender to cancel your direct debit and the policy.
If you paid the insurance ‘up front’ (i.e. when you took out a credit agreement), you may be entitled to a refund for the remaining term. Always check with your lender about your options.
