Paying even though I'd cancelled!!

tel3563

I've got a problem with an Insurance Company taking
automatic Direct Debits from my business account.

Basically I was a builder and hence had Public Liability
Insurance, anyway I ceased to have any work when the
property developer I work with went bust, we rang this
company and told them we no longer needed PL as I was
now unemployed an planned on getting a bona fida paye
job, which I did.
Now I did have a part time secretary and she swears
she sorted this out, but I only have her word, but having
spoken to her yesterday, she is still adamant so I believe
her.
They also hadn't settled a claim I'd made in Nov 2007
each time claiming they hadn't received my literature.
They still haven't settled this claim either, I'd sort
of given up on it to be honest.

Anyway, I realised they'd been taking my premium out
for the last 14 months??

The reason I never noticed is because its my business
account and I assumed it was my van insurance payment
coming out every month, forgetting I'd changed this to my
personal account

What are my options??

dunstonh

Contact the insurance company and provide them with the evidence that you cancelled the policy.

This type of insurance typically needs to be cancelled in writing or lapse due to non payment (cancelling direct debit). Whilst cancelling the direct debit doesnt cancel the contract, you do often find that with this particular type of insurance that would lead to a lapse.

You didnt cancel the direct debit and it appears you have no evidence that you cancelled the insurance. So, you are going to be totally reliant on the goodwill of the insurance company. However, if you can provide them evidence of when you ceased paying class 2 NI (self employed) or you closed the company (if limited), they may well accept that as it shows you didnt need it.

huckster

Hi

If you have no proof of requesting the cancellation I would recommend that you adopt the following approach.

Send a complaint letter by recorded delivery, asking the company to look into why the policy was not cancelled following instructions. If you have any envidence to show that you stopped trading, include a copy of this.

As the Insurance company has to register the complaint officially, hopefully they will look into the matter, more than they would if it was a general letter or phone call.

Obviously some of this is down to you, for not checking your statements and chasing this up. I doubt the company would have accepted the instruction from your secretary as normally they would only accept the instructions of the policyholder.

If the company concerned cannot find any evidence of receiving any cancellation instruction, they do not have to backdate the cancellation. You may therefore not receive a refund for the amounts paid in error and there is not much you can do about this.

dacouch

A lot of Public Liability policies for small builders have no refund if they are cancelled, policies for larger companies are often "Minimum and Deposit". This may stop you getting a refund for the first period although you might be able to get a refund for the period since renewal although if you have continued trading and cannot prove your cancellation instructions they may be reluctant to refund as they would have been liable for claims