LSAP insurance - is it a form of PPI?

#1
I just noticed on my payslip, that along with LSAP repayments, I am paying 2 quid-odd for insurance for the same thing. I don't recall it being mentioned at the time, and its probably in small print that I chinned of.

Anyhoo, does anybody (bearing in mind this is not the NAAFI) have any thoughts/SME knowledge as to whther or not this is a form of PPI that I could attempt to reclaim?

It may be peanuts but better in my pocket than the Governments, they will only spend it on foreign aid or some such.
 
#2
That is a very good question.

This payment is only taken off ORs, as officers are not thought to be capable of reneging on their loans, and was described to me as a form of insurance that covered the very small amount of people who failed to repay the full amount.
 
#6
ABN 19-13 might be useful reading for you.

In short, people who take out LSAP are paying a waiver premium to cover the circumstances detailed below. In my view, a small price to pay.

a. In the case of death of the Service person, recovery will be waived.
b. In the case of invaliding of the Service person, recovery will be waived, as long as the medical condition causing the invaliding did not exist when the LSAP application was originally approved. Any such waivers will be considered by SPVA PACCC2, who will consult the medical authority as necessary.
c. In the case of premature discharge or release, recovery may be waived as a very exceptional measure, depending on the merits of the case.
 

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