Incapacity/ESA and permanent health insurance

Hi glad I'm not the only one in this boat! My letter to my mp has been sent to Iain Duncan smith for a reply, meanwhile I await the tribunal... I've been doing some digging as to the old rules for incap and phi, and it seems that PHI fully paid by an employer is only taken into account if you have either been made redundant or taken early retirement, the PHI the becomes Pension which is taken into incap calculations, otherwise it is not considered which is why we get incap while on phi. This weekend I am going to go through the new rules very carefully re mean-testing. unfortunately my insurance policy states %salary less incap whether received or not. They have not amended the policy for ESA/JSA yet so I am having to put a piece together to fight that one as well. Will come back after the weekend with my views and if there is anyone out there who can confirm the old incap/phi rules I would be very grateful

Hi Purdie
I am in the same boat as you - receive PHI via a group scheme and still technically employed although been unable to do any work through illness for a number of years.
Like you, my PHI payments are for a percentage of pre illness salary less an amount for IB / ESA whether I receive it or not.
This always struck me as rather unfair, and a means fo the insurer to reduce their liabilities.
You confirm my belief, that if there is still a contract of employment, then the IB/ESA payments are disregarded and not treated as pension income.

Anyway - I am currently going through the IB / ESA migration process.
The insurer has found me to be "permanently and totally disabled" (not an easy feat in itelf as these cos will do anything to wriggle out of paying), so it will be interesting so see what ATOS / DWP have to say.....
Best of luck and keep us posted on your appeal.