Car Insurance issue with Norwich Union

wgm

Complaint against Norwich Union Insurance Ltd.

I am seeking some legal advice please.

I owned a Renault Clio and insured it with Kwik fit Insurance, (underwritten by Norwch Union) on the 23/3/07. I was the registered keeper and main driver with my son Anthony as the named driver.

On January 25th this year, I contacted Kwikfit Insurance, requesting for a new quote on a Peugeot which I intended to purchase to replace the Clio. In fact,
I contacted Kwik-fit Insurance twice to get a quote to upgrade my insurance cover for the Peugeot. I also clearly indicated that it was my intention to insure the Peugeot in my son Anthony’s name in order for him to start accumulating his own ‘no claim’ bonuses. I was advised that it was better to let this existing policy take its course till its expiry on the 23rd. of March 2008, with me as the main driver and Anthony the named driver. Then at renewal to consider insuring the Peugeot in my son’s name. I took this advice and on the 28th of January 2008 I purchased the Peugeot and paid the upgrade of £49.50.

Once I purchased the Peugeot, upon the advice of the DVLA and a general legal help line I registered the Peugeot with the DVLA in my son's name, in order not to register it in my name for the remaining two months period of the policy and then re-register it in my son's name at renewal. In this way this V5 would show two owners instead of three. I was told that it was perfectly legal to do so. The Peugeot was registered, taxed and MOT for one year.

Unfortunately, on the 3rd of February, my son was involved in a serious car accident caused by black ice, which resulted in the car being written off. Fortunately though my son was not badly hurt.

At first, when I put my claim through to Norwich Union via Kwik fit insurance, N.U. haggled in offering me trade price for the car instead of the market price, with the excuse that I purchased the Peugeot privately instead of from a trader. Then N.U. placed the onus on me to prove them wrong in their offer price by providing them with proof of the car's maket value at the time of the accident with local newspaper cuttings and Auto Traders prices. They also demanded that I released the name and address of the vendor of the car and to provide them with a bill of sale. I declined to do so. Ultimately, they found the excuse not to pay me any compensation for the loss of the car by claiming that I failed to notify them that the car was registered in my son's name and yet insured in my name as the main driver and my son and the named driver.

I am still battling with them for compensation of the market value of the car which was £4000.00

I ask you please to help me with this case. Have I done anything legally wrong? There is no mention in Kwikfit policy handbook that I cannot register a car in one person's name and insure it in another. Can N.U. hold back in paying me any compensation? I cannot afford this loss. I am without a car since the 3rd of February.

Your assistance in this matter is much appreciated. Thank you in advance.

raskazz

Interesting post - thanks for being so clear and precise, you'd be amazed how many people ask for advice without even explaining some of the basic cicrumstances.

Basically, to be entitled to indemnity under an insurance policy the policyholder has to demonstrate that they have an 'insurable interest' in the subject-matter of insurance (that being the car, in this case). To have an insurable interest you have to demonstrate a financial interest, i.e. if the subject-matter is lost, damaged or destroyed you will personally suffer financially. If the car is owned by your son then you as the policyholder have no financial interest, hence cannot be entitled to indemnity under the policy. Think of it this way - if I insured my next door neighbour's car, I have no financial interest in it, so I am basically gambling on their car being damaged to receive indemnity.

What is key is what was discussed between you and Kwik-Fit when you changed the vehicle on cover. They should really have asked a question regarding ownership of the vehicle. I recommend that you ask Kwik-Fit to supply you with the relevant call recordings - they have to do so under the Data Protection Act, if the calls were recorded. If Kwik-Fit made an error then it may be the case that NU will deal with the claim subject to Kwik-Fit agreeing to reimburse all their outlay.

It may also be the case that you have some comeback against the 'legal advice' agency that you contacted regarding the ownership of the new car - if they were at all competent then they should have been aware of the insurable interest issues if you explained the situation to them fully.

greco_2

That sums it up pretty well. It would seem that Norwich Union are not in possession of the full facts and are simply making the assumption that you are one of the many people who think it's clever to insure a young driver's car in a parents name to deprive the insurers of the correct rate for the risk. Hopefully, there will be a record of the conversations which you had with Kwik-Fit which will establish that you gave them a full disclosure of the facts.

Purely as a matter of interest, the name in which the car is registered does not constitute proof of ownership. Presumably you are in a position to show that you paid for the car personally and if so, you will be able to establish insurable interest as owner.

raskazz

greco wrote: »

Purely as a matter of interest, the name in which the car is registered does not constitute proof of ownership. Presumably you are in a position to show that you paid for the car personally and if so, you will be able to establish insurable interest as owner.

Ah, of course - this is why they asked for the bill of sale, to gain a better understanding of the precise circumstances surroundnig the ownership of the car.

[Deleted User]

wgm

My name is Becca Sibley and I work for NU - I'd be happy to investigate this for you if you could email me the policy number? My email address is [EMAIL="rebecca.sibley@norwich-union.co.uk"]rebecca.sibley@norwich-union.co.uk[/EMAIL] and I am working here in an official capacity.

I hope to be of help
Becca

wgm

29AUG08

Dear Friends,

My sincere thanks to raskazz, greco and beccus for your kind words of advice.

I shall now take up the matter, once again with N.U., in particular I'll try to get in touc with beccus for further assistance.

Once again many thanks for your support.

Brgds
wgm