Karma Insurance gone bust?

Wiggynut

Hi

I've recently moved house so I wanted to change my address with Karma Insurance and they did it over the phone (which I thought was odd as insurance is usually dependant on where you live (I also live on a ground floor whereas I was on the fourth floor!)

A week later I received an email saying they were unable to change my address as they are not allowed to deal with insurance until they have completed their IT update?!?!? why tell me on the phone that they have changed it right there and then????

So I asked to cancel the policy but they refused to help until after the next payment went through which they took five days early!
their website is down so it's not possible to cancel online and they refused to do it themselves.

I find it hard to believe that they do not have access to their policy holders accounts whilst undergoing an update... this has been going on for two weeks now.

Have they gone bust?
I'm still trying to cancel - I had to cancel my bank card so that they cannot take anymore money from me! (the payment was through my card and not a DD!? and it's through world pay - I tried to cancel that way but I don't know if it was them or my browser but it kept crashing!)

anyway... they might have gone bust so I would hold off applying for insurance from them if you still want to use them - until what ever problems they are having have been sorted.. maybe it is just a glich????

I'm now going to try endsleigh as I don't fancy trying a company that I've never heard of as they might go bust too?

QuirkyChemistry

I don't know if they have gone bust or not but I received an email from them the other day:

We regret to inform you that Karma Insurance Services Ltd has ceased to handle this type of business and therefore with immediate effect are unable to renew any monthly or annual possessions insurance policy.

Should you wish to continue this insurance cover we strongly recommend that you immediately seek alternative insurers.

If you pay your insurance premiums on a monthly basis you need to stop your WORLDPAY payment being deducted from your bank account.

Finally, please note that insurance policies already in existence as at yesterdays date, 29 June 2009, continue to provide cover until their expiry and any claims under valid policies should be submitted as provided by the insurance policy.

Unfortunately my policy renewed on 30th of June so I will not be covered but as that email was sent on 30th they had already taken my payment. I now need to do a Visa Chargeback. I have gone with Endsleigh instead.

My boyfriend found it easy to cancel through Worldpay. He had a password and username on an old email from them and it was really simple.

Wiggynut

QuirkyChemistry wrote: »

I don't know if they have gone bust or not but I received an email from them the other day:

We regret to inform you that Karma Insurance Services Ltd has ceased to handle this type of business and therefore with immediate effect are unable to renew any monthly or annual possessions insurance policy.

Should you wish to continue this insurance cover we strongly recommend that you immediately seek alternative insurers.

If you pay your insurance premiums on a monthly basis you need to stop your WORLDPAY payment being deducted from your bank account.

Finally, please note that insurance policies already in existence as at yesterdays date, 29 June 2009, continue to provide cover until their expiry and any claims under valid policies should be submitted as provided by the insurance policy.

Unfortunately my policy renewed on 30th of June so I will not be covered but as that email was sent on 30th they had already taken my payment. I now need to do a Visa Chargeback. I have gone with Endsleigh instead.

My boyfriend found it easy to cancel through Worldpay. He had a password and username on an old email from them and it was really simple.

I don't or at least not supplied with any username/password for worldpay - I've kept all emails from Karma so I had to cancel my bank card - can't access my bank account until I get a new card now.

when you say renewed... do you mean monthly or yearly?
I paid monthly so I have no idea if I'm still 'covered' and frankly after this farce I'm wondering if I ever was!! :rolleyes:

I object to the fact that they were very vague about how to cancel until they took my money several days early... then after it had gone through they tell me how to stop payments going through... smacks of desperation!

I don't think I can do a charge back... I did call my bank and they said I can only cancel my card to stop any future payments going through (debit card on my student Natwest account) - luckily only a small amount for my monthly insurance (I have seperate insurance for my camera equipment so it did make the premiums with Karma a lot lower!)

seems like you got a different email to mine... I got mine AFTER taking money early and several days after saying I want to cancel.

glider3560

They *may* be going through a change of ownership, I found this on Companies House:
21/04/2009 DIRECTOR RESIGNED RICHARD OLDFIELD
22/05/2009 DIRECTOR RESIGNED RICHARD WATSON
26/05/2009 DIRECTOR APPOINTED E - SYNERGY NOMINEES LTD
18/06/2009 DIRECTOR RESIGNED BRIAN WRIGHT

Fraggle123_2

From what I have found out I don't think they are trading anymore. They only recently expanded into other types of insurance having been mainly known for Travel Insurance, especially for those with medical conditions for which they would normally be either ripped off or not covered when dealing with other insurers. The status of Karma Insurance FSA registration number 454484 is "Former" when you refer to the FSA Register at fsa.gov.uk. This indicates they are not / cannot trade.

Whilst I cannot speak for other types of insurance, an email I received from them recently when I asked to amend a travel policy quoted registration number 497103 which refers to PJ Hayman. It also states that "Karma" is a trading name of PJ Hayman. "Free Spirit", another name familiar to those with existing medical conditions, is currently that organisation's main trading name.

I conclude that this means that the travel side is now part of Free Spirit, and that all other insurances are no longer available for new sales.

I hope this helps, I have also emailed the FSA for clarification since I've got a travel policy for a forthcoming trip.

aheaton46

Just to add to the previous messages, be very careful if you have an existing policy with Karma. I found they took payment for the policy renewal without having sent any indication they would. Phone calls and emails went unanswered.

I did eventually get a response from Helen at Karma claiming the payment they took was for the renewal, and stating if I wanted a refund I'd have to contact Brian and Lloyd Wright CoOnsultants (what they have to do with things I have no idea). After I'd tried to contact Brian a number of times without success, Helen eventually refunded the money.

So - check your credit card statements carefully else you may have been charged and not know about it!

Wiggynut

aheaton46 wrote: »

Just to add to the previous messages, be very careful if you have an existing policy with Karma. I found they took payment for the policy renewal without having sent any indication they would. Phone calls and emails went unanswered.

I did eventually get a response from Helen at Karma claiming the payment they took was for the renewal, and stating if I wanted a refund I'd have to contact Brian and Lloyd Wright CoOnsultants (what they have to do with things I have no idea). After I'd tried to contact Brian a number of times without success, Helen eventually refunded the money.

So - check your credit card statements carefully else you may have been charged and not know about it!

I canceled my bank card so that they can't take money from me anymore!
they kept trying to take money 2 weeks before they are suppose to!?!??!!? and yet I've repeatedly told them I want it canceled - and to cancel via worldpay means having a password and username but I don't have one - I tried using the 'forgot password' but have yet been sent a new one so I can't cancel with them... wonder how long it will be before they try again... :rolleyes:

I have a feeling they only have one person working there - Helen is the only one who responds to emails (eventually that is!!)

I've tried contacting Brian at Lloyds consultancy and they have never responded!

I've gone to Endleigh now... lets hope that's trouble free!

I've half a mind not to bother with insurance - I don't usually and the only people to steal from me are flatemates or friends (now ex obviously!) which I'm sure insurance doesn't cover anyway!

boulevard

I'm having the exact problem, karma via Llyods took payment from my account without any notice for renewal of a policy with them. And I've only just e-mailed Brian and Lloyds Wright. But somehow don't think I'm going to have much luck hearing from them, and the Karma webiste is completely unhelpful in regards to who and how to contact them the website sems to crash when I try to find a means of contact - so frustrating!!!
So basically my question is, How can I get in contact with Helen? please helllppppp.

Wiggynut

boulevard wrote: »

I'm having the exact problem, karma via Llyods took payment from my account without any notice for renewal of a policy with them. And I've only just e-mailed Brian and Lloyds Wright. But somehow don't think I'm going to have much luck hearing from them, and the Karma webiste is completely unhelpful in regards to who and how to contact them the website sems to crash when I try to find a means of contact - so frustrating!!!
So basically my question is, How can I get in contact with Helen? please helllppppp.

this is the email I used:
Helen@karmainsurance.com

troston

I would steer clear of Karma. They sell themselves as being more ethical, more flexible and friendly than other insurers.

I was shocked to find out that they would not even consider Volcanic ash related claims. Their underwriters really couldn't give a proverbial.

Even with their fulsome claims guarantee (linked from their .com home page)

they would not move an inch.....

In future I personally would go for First Direct, who on this occasion covered any Volcanic Ash claims, or at least a much cheaper insurer who are more upfront....

atypical

troston wrote: »

I was shocked to find out that they would not even consider Volcanic ash related claims. Their underwriters really couldn't give a proverbial.

To be fair, most insurers did not cover claims due to the ash. The clause was normally something about how claims related to grounding of planes on the recommendation of a national body were not covered.