Bank Of Ireland May Need To Rely On Professional Indemnity Insurance

A County Dublin couple are filing a suit against the Bank of Ireland as they believe that the bank’s advice led them to lose 22,000 Euros. If successful, the bank will need to rely on its professional indemnity insurance to cover the costs of any compensation they may be asked to pay.

The couple, Louis and Margaret Kilmartin, took out a 50,000 Euro endowment policy with the bank in the early Nineties. It was said that once they had paid off their mortgage, they would also have a ‘nest egg’ from the surplus. However, this is not what transpired and they actually found themselves around 22,000 Euros out of pocket, with Mr Kilmartin using his pension to make up a shortfall of nearly 5,000 Euros.

The bank is being accused of negligence on account of the fact that they did not warn the couple of the risks associated with such a mortgage. It is even claimed that they were steered away from safer options in favour of an endowment mortgage.

The case could set a precedent which might see any number of other dissatisfied mortgage holders taking legal action. It is just one more reason why professional indemnity insurance is so vital.

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