Advice needed please: CIS have void car insurance

m333ssa

Hi all,

I have been lurking about this site for many months and this is my first thread (I hope I am posting in the correct place).

I was hoping that someone could possibly give me some help/advice please.

My dad bought a car serveral years ago for my brother to learn to drive in, my brother soon lost interest so my dad kept the car for himself to get him to work and back.

My brother finally passed his driving test through an instructor so my dad applyed for car insurance online, he selected himself as the main driver/owner of the vehicle and my brother as an additional driver.

A few months ago my brother went into the back of someone and a claim was submitted by the other driver. When the insurance contacted my dad to go over the details it came to light that the car was not in my dads name but my brothers (Dad didn't remember ever putting the car in my brothers name when he bought it 4 years before and it was a genuine mistake made when applying online).

The CIS insurance sent a letter today to say that the insurance is void because false information was given at the time of applying.

Can anyone please tell us if we have a case on our hands that we might win. It was an honest mistake made by my dad.

With regards to the claim, does this mean that my brother has to pay the other driver out of his own money?

I hope all of this makes sense.

Thanks in advance.

Melissa

LinasPilibaitisisbatman

The insurer will pay out to the third party and will seek indemnity from the policy holder.

You can try appealing but it looks like a very closed case of fronting so unlikely to suceed, at least not to make it financially viable.

What was the car worth?

The insurers may agree to pay out and subtract the extra insurance they would have charged however on an old car the extra premium to properly insure your brother as owner may not make it worth the hassle

m333ssa

Many thanks for your response.

My dad has tried to contact CIS this morning to make an aapeal however he was told that his call could not be directed. The underwriters had made the insurance void and they would not change their mind.

Would you suggest that he contacts a solicitor to try for him or simply write a letter at this stage?

The car is only worth about £200.

Just spoke to my Dad and he has been to the Citizens advice and has been told in not so many words that he doesn't have a "cat in hells" chance of getting the insurance to retract their decision!

Anyone any ideas what happens now. Can this person who my brother hit claim against my dad?

dragoon47

what does the policy say about ownership of the vehicle, remember the v5 is a document that shows the registered keeper BUT not necessarily the legal owner, you will need to read the document.. plus the declaration,,,,ie does it say make a false declaration knowingly( ie did he lie), although... sit back and read through the document carefully you may find a valid arguement, and take it up with the ombudsman.

ijgreer

Shown as invalid information on a policy so they are well within their rights to cancel.
Not quite so much a 'fronting' case as not intentional by your dad, but in the eyes of the company they will look on it like that.
Always wise to check the proposal form.

dacouch

You could try writing a letter to the CIS explaining the situation and if applicabel that it was an honest mistake. They may change their mind although I doubt it.

It is very important that your father declares to his current Insurers and any futures Insurers that he has had a policy cancelled / voided by CIS as it is a very important fact he has to declare which has a major influence on Insurance. If he does not declare this he runs a very real chance that other claims in the future will not be paid as well.

With regard to the claim, it is likely that under the RTA rules the CIS will pay the other drivers claim out and will then seek to recover the money from your father.

Do you know when the CIS have voided the policy from eg the last renewal or the date you took the policy out originally? I say this as they would normally refund the premiums you paid from the date they voided the policy as they are in effect saying the Contract (The Insurance) is null and void.

They will have sent your father a letter voiding the policy which should state when they have voided it from.

m333ssa

Thanks so much to those who have responded.

I have taken the advice given and helped my dad to write a letter appealing against the decision made.

In the mean time we gathered all the documents together from the last re-newal date and checked them thoroughly and in particularly the 'confirmation of insurance' document that states on the top must be checked and any changes noted within 14days.

The Registered Keeper is not stated on any of the documents.

Therefore, if the mistake was made on our part at the time of applying online, we were never given the opportunity to clarify.

On the letter we recently received regarding making the insurance void from 1st April 2008 which was when the insurance was last re-newed. If the CIS won't review their decision, shall we request the premium we paid back?

dacouch

You can't rely on the arguement about the renewal notice as its asking of any changes in your circumstances since the last renewal / when you took the policy out eg convictions etc.

Their issue is that on the proposal form your dad would have signed a document saying he was the registered keeper of the vehicle. If you are writing a letter to them it should be on the basis that the vehicle was registered in your brothers name by mistake (Assuming this is the case). Along with any mitgating circumstances eg your dad was ill at the time or was having family problems etc (Again make sure you tell the truth). If there is any other proof that your brother would not have been the main user of the vehicle eg he had a bus pass to get to work etc etc then it would be wise to mention this in the letter as this may help prove your brother was not the main user of the vehicle and it was a simple error that it was registered in his name

If they are voiding the policy from the 1st April 2008 then they would normally refund the money from then. I would not be asking for it at this stage as you are currently sending them a letter asking them to review their decision and reinstate cover. When / if they confirm they are not changing their decision you should ask for it then.

I'm not an expert on CIS but in I would not hold out too much hope they will reverse their decision.