Payment Protection Insurance (PPI)

Questions & Answers

We recently wrote to affected customers regarding their mortgage account and a mistake we made on the associated PPI policy. In some cases, the mistake occurred where the level of cover that was charged to the policy was higher than what the customer originally asked for and what was detailed in their PPI documents. As we charged a higher level of cover to the policy, we are now refunding the premiums we overcharged, including an interest payment for not having access to the money we overcharged.

The following Q&A may help to answer any questions you might have.

Why have I received this letter?

You asked us to apply a level of cover to your PPI policy associated with your mortgage account, which is the level of cover that was detailed in your PPI documents. Unfortunately, we charged a higher level of cover instead of what you originally asked for.
What is PPI?

PPI is an optional insurance product which can help you make your mortgage repayments in the event of a successful claim if you suffer an accident, illness or involuntary unemployment (business failure if you’re self-employed). The policy covers your mortgage payments up to a maximum of €2,000, for a maximum of 12 months. It also provides lump sum cover for specified critical illness of up to €24,000. The level and conditions of cover are set out in the terms and conditions.

At the time the policy was administered by TWG Services Limited and underwritten by London General Insurance Company Limited, Irish Branch.
When did you find out about this issue?

We discovered this mistake in October 2020. Since then we have identified all affected accounts.
How are you correcting this mistake?

We are writing to each affected customer and refunding the premiums we overcharged. This includes an interest payment for not having access to the money overpaid.
How are you making sure this mistake doesn’t happen again?

We have updated the internal process which resulted in this mistake.
Has the Central Bank of Ireland (CBI) been informed of this mistake?

Yes, the CBI has been informed in line with our regulatory reporting obligations.
My PPI policy is closed. Do I need to do anything now?

No, you don’t need to do anything. If you would like to talk to us, please ring us on 0818 300 157 between 9am and 5pm, Monday to Friday.
Who can I talk to if I have a question or want to complain?

If you have a question or want to complain please ring us on 0818 300 157 or you can write to us at:

AIB Insurance Services
AIB Bank,
Block H,
Central Park,
Leopardstown,
D18 CK74.

You can also complain to the Financial Services & Pensions Ombudsman (FSPO). The FSPO seeks to resolve complaints through mediation, or through investigation and adjudication. Information about the services of the FSPO is available from www.fspo.ie.