Car insurance cancellation fees Robbery!
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Hello Tozer,
My post (number 13) referred to a case where the driver responsible for the crash had no insurance.
I don't remember the exact circumstances.
Perhaps the person was traceable but had no assets so could not be pursued. (specualtion) or maybe they were untraceable.
But anyway a check was done to see if there was insurance in place and the previous driver had some.
Hence my caution about advising people to keep a policy on a car they don't own.0 -
Erm. MIB is for uninsured drivers or where a personal injury occurs and the driver cannot be traced. What does that have to do with the issue?
Thanks for the references - I haven't done RTA litigation for about 12 years so forgive me if my memory is a little cloudy...
It has everything to do with the issue!
The MIB's uninsured drivers agreement does not merely cater for negligent drivers who have no policy in force whatsoever, it also caters for cases where there was a policy inforce but it was rendered invalid due to a breach of the policy terms. So the victim has to obtain a judgement against the driver responsible; if the judgement is unsatisfied then the case is referred to the MIB. If there was a policy inforce for the vehicle at the time of the loss but was not operative due to a breach of terms then the insurer still has to settle the unsatisfied judgement under Article 75. It is only if there was no policy inforce whatsoever that the MIB itself settles.0 -
It has everything to do with the issue!
The MIB's uninsured drivers agreement does not merely cater for negligent drivers who have no policy in force whatsoever, it also caters for cases where there was a policy inforce but it was rendered invalid due to a breach of the policy terms. So the victim has to obtain a judgement against the driver responsible; if the judgement is unsatisfied then the case is referred to the MIB. If there was a policy inforce for the vehicle at the time of the loss but was not operative due to a breach of terms then the insurer still has to settle the unsatisfied judgement under Article 75. It is only if there was no policy inforce whatsoever that the MIB itself settles.
errr (to quote you). If you look, I said that cars do not have policies but people do. The car by itself is not insured - it is made of metal and cannot pay premiums. The driver is. If the driver is not negligent then there is no claim crystalised.0 -
errr (to quote you). If you look, I said that cars do not have policies but people do. The car by itself is not insured - it is made of metal and cannot pay premiums. The driver is. If the driver is not negligent then there is no claim crystalised.
Read what I posted above again. The victim takes procedings out against the negligent driver. If the uninsured driver cannot satisfy the court judgement then the insurer of the vehicle could then be compelled to settle the claim under Article 75. Then the insurer assumes the right of recovery from the policyholder, under a clause that is always included to the effect of "If we are forced by law to pay a claim that we would not ordinarily pay then you must repay us the amount".0 -
Sorry but I continue to disagree. Insurers are only obliged to pay out if they are a Road Traffic Act insurer. From MIB's website:
an Insurer will not be a Road Traffic Act Insurer:-
(A) Disposal of Insurable Interest
If the insured has sold or otherwise disposed of any insurable interest in the vehicle(s) covered under the policy, so that, on a true interpretation of the policy, the policy has ceased to have effect, see Tattersall v Drysdale 1935 2KB 1740 -
I recently (last December) cancelled my car insurance policy, or i should say I didnt renew it as i sold the car. At the time of phoning I requested a NCB document so that it could be passed on to my new insurer for my new vehicle. It took 4 phone calls and nine weeks for them to forward it. Now they are claiming cancellation fees. I far as I am concerned I did not renew the policy (why insure a car I no longer had?). Their phone agents were not very polite and at no time mentioned a cancellation fee when i phoned requesting the NCB. They have since passed on the details to a debt collection agency who are no more pleasant than the insurance company. The money involved is 58 pounds, not a huge amount but there is a principal at stake here. None of these people seem to realise that I would not need an insurance policy for a car a no longer had........despair despair0
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I can only see cancellation fees applying here, mhiclieod121, if in fact the policy was set up (in the original agreement) to auto-renew unless you notified them you wished to cancel, and you then didn't notify them of your wish to cancel until after renewal had already taken place.
In those circumstances, you would owe them the cancellation fee because the policy would have renewed - whether or not you'd actually paid any renewal premium.
If that isn't the case (and if it was, you'd have been issued with "thanks for renewing with us" documentation, followed by "where's your premium" letters) then they are wrong to charge a cancellation fee if the original annual term completed.
I don't understand why, in the circumstances you describe, you would need "an NCB document". The NCB document is your renewal notice, which you must have already had.0 -
always challenge the cost - just done that with Adrminal down from £47.50 down to £22.50.0
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I cancelled my sons motorbike insurance as the bike has been scrapped and the insurance co. informed me they would need £134 to cover any costs which is virtually the last 3 payments. I think this is absolutely disgusting as he no longer even has the bike. They told me tough and it has to be paid!!0
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Keep paying it to acquire another complete 1 year ncb?0
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