Cancellation charges in 14 day cooling off period

The_Maestro

Hi,

I noticed Bennetts Motorcycle insurance had debited my card today for an automatic renewal. The old policy ran out on the 7th March 2010 and I didn't receive a reminder or new documents. So I phoned them up to cancel because I recently sold the bike and they told me it was a 20 pounds cancellation charge + a charge for the period used on the policy. This seems very unreasonable - what is the actual point of the 14 days cooling off period if they still charge you? The policy itself was only 95 pounds so 14 days of that doesn't even come anywhere near even 20..

Is what they are doing legal?

huckster

They have to issue you with renewal documents confirming the terms and conditions. If you had not received these, they you should make a complaint and go to the FOS if necessary.

What you will find is that if you make a complaint in writing by recorded delivery advising non receipt of documents and that you have sold the bike, they will look at this again. They could even waive any charges since renewal or only charge a time on risk relevant to the period of cover required.

If they forced you to go the FOS route, they would be charged a £500 case fee by the FOS and it would cost you nothing apart from the postage. I think they will look to come to an amicable solution.

cjgoodsell

You say you have sold the bike... If/when you have proof of sale from the dvla then offer to send a copy of that so they can look at applying the back date cancellation...

What they have done is legal but you havent received the documents... Their system will show its been sent so they will then easily say "its not in our control once left the office" So they have acted in your interest so you didnt have a gap in your cover if the worst had happened and you hadnt sold the bike!

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The_Maestro wrote: »

Hi,

I noticed Bennetts Motorcycle insurance had debited my card today for an automatic renewal. The old policy ran out on the 7th March 2010 and I didn't receive a reminder or new documents. So I phoned them up to cancel because I recently sold the bike and they told me it was a 20 pounds cancellation charge + a charge for the period used on the policy. This seems very unreasonable - what is the actual point of the 14 days cooling off period if they still charge you? The policy itself was only 95 pounds so 14 days of that doesn't even come anywhere near even 20..

Is what they are doing legal?

Of course it's legal, you muppet. Do you imagine they'd be doing something ILLEGAL?

They have provided you with cover. They weren't to know you had sold your bike. Why didn't you tell them when it happened?

It beggars belief that people come on this forum and basically tell people what disorganised twonks they are.

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Pipe down.

Nothing you've written so far suggests that you know what you're doing or what you're talking about. You can't rely on a cooling off period to compensate for ignorance.

You didn't tell them to cancel the policy so they didn't cancel it. As far as your insurers are aware they have been covering you. I feel like I've written this before somewhere.

You claim to have wanted to earn your NCD, so you must have known when the policy was due to renew...

I feel sorry for you.

The_Maestro

I'm sorry that certain people find this simple post very hard to understand. I did not receive a renewal letter and the original correspondence a year ago does not mention auto-renew that I can see. It is the norm in my experience for insurance to lapse. I have insured a bike for 10 years and never come across an auto renew policy, only ever had one on a car. Someone said 'I did not ask them to cancel the policy so they didn't. The contract was for 12 months not indefinate.

The cooling off period makes little or no difference, I would not lose 3 or six months if cancelling after 14 days. Its 90% of policy returned within a month up to 6 months = nothing returned. Again this is another con because it should always be pro-rata and always was up until about 15 years ago. That is another subject.

As for illegal or unlawful. Yes I can see your point, for example a contract needs full disclosure to be lawful and it seems that did not happen here. However as you probably well know, insurance contracts are not normal contracts, they are surrounded with all sorts of legislation (un needed in my view). Neither party need strictly adhere to the written terms of the contract to keep it in force. They are therefore a permanent grey area.

This country does not have any interest in what is lawful anyhow, only what is legal/illegal and regulated by UCC rules rather than real 'law'.

Anyway thanks to people that helped. I just payed the 20 odd quid. Not really worth my time writing letters etc. I do think its an extortion scheme though and begrudge them the money as they have done nothing to earn it and provided no service.

cjgoodsell

Ok... All you had to do was tell them you sold the bike when you did not wait until the renewal date...

Automatic Renewal - Its in the original terms of the policy and it should be told to you ar renewal invite stage... You MAY NOT of received the documents but they dont know that... As far as they are concerned its been posted because they have record on their system...

Companies that offer Direct Debit/Credit/debeit card auto renewal from my understanding are obliged to auto-renew the policy for YOUR protection as per FSA. My understanding of it is when an insurance policy is leaglly required e.g. car/motorcycle/van anything that is covered by the road traffic act.

So in their defence all they have done is protected you because you didnt contact them to state otherwise... Forget the renewal stage you had plenty of time from the moment you sold it...

To save you the hassle all you should of done and you still have time to ask them this... "If I can provide to you proof I have sold the vehicle will you waive the fee?" Then they may of referred your case to an underwriter.

I am a manager in Insurance I had a customer in same situation earlier this week... They thought my advisor was wrong etc when I made them see sense they came back provided me with the info... I referred it on and the underwriter said it was fine and gave full refund... To start with this person refused to help me to help him now he is happy because he never paid any fees!

dacouch

CJ The FSA do not insist compulsory Insurances are on automatic renewal, they only insist renewals are handled in a certain way. Have a look at ICOB

cjgoodsell

Ok thanks for clarifying that dacouch Its just something my bosses and trainers have always told me... I will check it out...