Churchill and bereavement

curlycat_2

Sadly we lost my M in Law recently. Her house was insured with Churchill and she paid yearly by dd. Unfortunately when she died, her account was frozen and has since been closed. The executors account is in a different bank.

The house has thankfully sold and we rang to cancel the insurance. No problem they said, we'll put the refund in the account we got it from. Explained that the account no longer exists. Apparently, due to 'data protection' and 'FSA rules' it would be fraud to put it anywhere else (like everyone else is doing, put into an executors acc). Therefore, once they write to us to tell us they've closed the policy and refunded the money into limbo, WE have to get hold of the old bank and say 'please could we have the money ?'

HELP they are so intransigent over this.

lisyloo

Sorry for your loss.

Why don't you simply get hold of the old bank and ask them to transfer the money?
I realise you must have a great deal of admin to do, but I can't really see the issue with this.

vusys1

Churchill are correct,due to FSA rules, monies paid must be returned to their original payment method, if the account is frozen as you say,then Churchill accounts will be automatically notifed by the bank that the account is closed. A cheque will then be issued in the name of executors.

curlycat_2

Thank you for your kind replies.

My frustration is caused by the call centre workers who, unlike yourselves, have told us it is our job to get the money from the bank, not that they will return to Churchill who will then issue a cheque.

They just kept saying the money would be in a holding account at the bank.

MrRedundant

curlycat wrote: »

Thank you for your kind replies.

My frustration is caused by the call centre workers who, unlike yourselves, have told us it is our job to get the money from the bank, not that they will return to Churchill who will then issue a cheque.

They just kept saying the money would be in a holding account at the bank.

Well this isn't actually true either. Churchill are correct that they will refund it to the account.

You should have actually notified them already that your mother was deceased and they would have returned the money to the excutors for distribution with the other assets.

When churchill do this the money might bounce back; it might still go into the account or it might go into a suspense.

Either way I actually think your criticism is unfounded. I have every sympathy for your mother in law but they should have been informed by the executor of the death at which point the policy would likely have been nullified and a cheque/payment sent to the executor for distribution with the executor becoming responsible to insure the house.

I suspect if anything had happened the insurance would have been invalid.

curlycat_2

Sorry to be pedantic. But Churchill were notified on my M in L's death. They had copies of the death certificate and of the grant of probate when that was obtained. They said the insurance could remain in force until either the house was sold or transferred to someone else.

We would have been happy for them to return the payment to the executors (us) for a new policy to be set up if we'd known the problems not doing would cause.

I appreciate someone not in our situation would think I'm fussing, but the frustration is caused by a system not of our making. We've always notified Churchill throughout and had letters back confirming the situation

Mikeyorks

MrRedundant wrote: »

the policy would likely have been nullified and a cheque/payment sent to the executor for distribution with the executor becoming responsible to insure the house.

.

NOT ......... until Probate is granted.

Mikeyorks

curlycat wrote: »

We've always notified Churchill throughout and had letters back confirming the situation

In Probate cases I've had no problems with Insurance companies issuing refunds direct to me as Executor. None have been daft enough to attempt to refund to closed accounts.

But I think you've been fortunate if they've maintained the same policy throughout ... with an empty house? Normally they restrict the policy by adding a caveat regarding 'heating / draining of water systems / regularity of visits' Then as soon as Probate is granted they will void the policy and insist on one in the Executor's name -with severely restricted cover, and significantly increased premiums.

MrRedundant

Fair enough but to be fair it still doesnt change that Churchills behaviour was entirely reasonable and in line with what any other company would do. It would be entirely inappropriate for the refund not to go back to the account or executor and no matter what they come up with this won't change.