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Consumer watchdog Which? has made this startling claim after research revealed that many consumers who have bought PPI in the last five years are likely to fall foul of at least one 'significant exclusion' that would prevent them from making a successful claim.

The consumer watchdog claims that as many as 2 million policies have been sold to consumers who may be ineligible for cover due to exclusions.

For example, people who are self-employed or on a fixed-term job contract often are not covered by PPI.

Exclusions also apply to many people aged 65 and over, or people who might claim for absences relating to pre-existing medical conditions also may not be covered.

Which? estimates that around 6 million PPI policies (or about a third of the market) were attached to loans at the end of 2006.

Which? personal finance campaigner Doug Taylor said: "We've always known that people were being mis-sold PPI, but we were still amazed to discover the scale of it.

"It appears that salespeople are chasing their commissions, their bosses are chasing profits - where's the sense of responsibility to the customer?"