Proof of no claims - at insurance company's discretion???

cherries123

I used to have a car insurance policy with Diamond, but had a disagreement when they took money from my account through direct debits that were not agreed. I have formally written a complaint and they have basically said get stuffed! (still in negotiation)

In the meantime I have a new policy with another company who of course need proof of my no claims discount. When I went back to Diamond to ask for this, they said it was company policy to withold this information as I have an outstanding debt to them. I told them the cancellation was made because I lacked trust in the company after they wrongly took money from my account, incurring me with bank charges and failed to deal with my complaint. In reply the guy's exact words were "I cant comment on that".

Are they allowed to do this? :mad:If I have no proof of no claims I'm looking at an extra £350 worth of premiums, and the new insurance company have only given me 14 days to resolve the issue until they add on the premiums. I doubt I will come to any agreement with Diamond until then!

Any help at all is greatly appreciated!!

lisyloo

when they took money from my account through direct debits that were not agreed

Under the direct debit guarantee you can get the money back through your bank if these were indeed not agreed.
I suggest you google for "Direct debit guarantee" for more info.

When I went back to Diamond to ask for this

What did you do with your renewal notice?

Are they allowed to do this?

I'm a little confused.
If you cancelled the policy part way through the year, you will NOT get NCB for that part year.
Therefore you should use your previous renewal notice.

Please clarify what happened to your previous renewal notice (and was that NCB with Diamond or another company).
If it was with a previous insurer then they might be more co-operative. - so jsut call them for it.

raskazz

When you say that they 'took money that was not agreed' what do you mean? Have you actually been in some way overcharged by Diamond or was the issue the timing of the payments?

Some companies will not release proof of no claims discount if there are outstanding monies. Generally this is allowed as long as they state this somewhere in their policy terms.

Your last renewal notice will not be sufficient as proof because you were insured on a policy in the interim - with the associated potential for claims affecting NCD in the meantime.

You shouldn't have cancelled the policy until the complaint had been resolved either way. Just because you have made a complaint doesn't give you the right to escape your obligation to pay the premium for the service provided prior to cancellation according to the terms of the policy. I'm struggling to understand how the complaint can still be 'in negotiation' but elsewhere you state that they have 'failed to deal with it'.

tehone

Use your last renewal notice or you could send Diamond a Subject Access Request (£10 fee maximum) and they'll have to send you everything

http://www.ico.gov.uk/Home/what_we_cover/data_protection/your_rights/how_to_access_information.aspx

http://www.ico.gov.uk/upload/documents/library/data_protection/practical_application/subject_access_-_guide_for_data_subjects.pdf

raskazz

tehone wrote: »

Use your last renewal notice or you could send Diamond a Subject Access Request (£10 fee maximum) and they'll have to send you everything

http://www.ico.gov.uk/Home/what_we_cover/data_protection/your_rights/how_to_access_information.aspx

http://www.ico.gov.uk/upload/documents/library/data_protection/practical_application/subject_access_-_guide_for_data_subjects.pdf

They only have to send the data within 40 days. Somehow I suspect that the information would be sent towards the end of that period, rather than in time to resolve the imminent NCD issues with the new insurer.

dunstonh

they have basically said get stuffed! (still in negotiation)

Telling you to get stuffed doesnt really sound like negotiation

In the meantime I have a new policy with another company who of course need proof of my no claims discount. When I went back to Diamond to ask for this, they said it was company policy to withold this information as I have an outstanding debt to them. I told them the cancellation was made because I lacked trust in the company after they wrongly took money from my account, incurring me with bank charges and failed to deal with my complaint. In reply the guy's exact words were "I cant comment on that".

Are they allowed to do this?

Yes they are. You havent paid the premiums so you havent accrued any no claims bonus. In effect you have not been insured so the NCB from your previous year will apply.

Use your last renewal notice or you could send Diamond a Subject Access Request (£10 fee maximum) and they'll have to send you everything

That wont mean they issue a NCB confirmation though. If the policy is unpaid and has been voided then the NCB doesnt exist for that year.

cherries123

Thanks for all your replies. I know I cancelled the policy early but only because I was worried about further charges. I initially called to change direct debit dates and knew there would maybe be an overlap so also paid an extra month's worth by switch. I was assured the new date would be the next date money would come out of my account - which it was, along with the old date! When I called about it I found them rude and unhelpful so was worried it might happen again.

As for the no claims - I already had three years before I took out a policy with diamond and it is this that I need to prove. My new insurance company says they need evidence that I didn't make any claims in the time I was with diamond, even though I sent them certificates from diamond (beginning of ploicy) and an old company from before diamond.

I refuse to pay cancellation fees and charges to a company which has been totally incompetent, but if I dont then I will have to pay the premium to the new company. All I need to know is - lawfully do diamond have the right to withold my proof of no claims (which was earned before I had a policy with them) ??

cherries123

Forgot to add - when I say negotiation - I mean I'm going through the Financial Ombudsman to resolve the problem.

raskazz

cherries123 wrote: »

All I need to know is - lawfully do diamond have the right to withold my proof of no claims (which was earned before I had a policy with them) ??

This question has been somewhat muddied by the FSA's 'Treating Customers Fairly' regime. General consensus at insurers where I have worked at is that insurers or intermediaries can withold proof of no claims discount where premiums are outstanding as long as they state that they may take such action in their policy documentation.

jeppy

If you are refusing to pay any outstanding charges eg admin fees and short period charges the ins co are entitled to withold the proof of bonus. They may also take the matter further to recover such monies.

I would look into this as you may end up with a CCJ.