business insurance

nestor_cameron

I took a yearly business insurance 2 months ago.
I paid the whole amount by cheque. Now I don´t need it anymore and I would like to cancel it. Therefore I would like to claim some of the money back . The broker says it is impossible because.....

"Liability insurance is arranged on a 'minimum and deposit ' basis , whch means that the full annual premium must be paid even if the insurance cover is cancelled after one day. The reason for this is that an insurer can be asked to meet a claim ,for example - for an injury to an employee during the period of insurance , years after the event that was the caused of the claim , and consequently the insurer expects to retain the full premium paid to cover their liability to such claims.

I had asked the AXA to consider offering a pro-rata cancellation , however, they have not done so , and consequently you will not receive a refund of the premium paid."

And that was the brokers answer.
Is that true?
Nestor

dacouch

Was the policy for just Liability only or does it include any element of property eg contents insurance ?

How big is the premium

nestor_cameron

only liability, not content or any element of property.
the premium is 278.15 pounds
thanks

dacouch

Can you tell us the name of the policy from Axa eg is it called "Tradesmen", you should find the name of the product on your policy schedule or polic booklet.

nestor_cameron

yes, it is tradesmen

dacouch

Have a look at page 8 of your policy where it explains their cancellation terms. These appear to allow a pro rata refund less a charge of £50 (The broker may make a charge as well).

Here is a link to their policy.

http://www.axa.co.uk/assets/pdf/axa.co.uk/business/insurance/policy-pdfs/percapita-liability-tradesman-policy.pdf

In the circumstances I would be asking Axa to back date the cancellation refund to the original date you requested

nestor_cameron

thanks a lot, I will have a look now. I will let you know what happens.
thanks

nestor_cameron

thanks a lot.
I have got my money. The insurance company have apologise and said they will send me a cheque this month.
They said the person I contacted there didn´t now about this cancellation policy.
thanks a lot again
cristina

dacouch

nestor_cameron wrote: »

thanks a lot.
I have got my money. The insurance company have apologise and said they will send me a cheque this month.
They said the person I contacted there didn´t now about this cancellation policy.
thanks a lot again
cristina

That's good news, I'm not surprised as Axa do have some inexperienced staff, however the broker should have known better.

All they had to do would have been have to look in the policy as I did which took approximately 1 minute. The letter they sent you quoting minimum and deposit etc etc must have taken them considerably longer.

Bearing in mind the broker will probably raise an admin fee for cancelling the policy I would be asking them to waive all or part it as they have not done their job properly (They should be looking after your interests) and you have had to find the correct information for them.