Insurer cancelled policy without notice - where do I stand?

Lum

Well technically speaking you wern't driving illegally as the insurance are still liable for third party damages until they get the certificate back from you, not that that's a huge comfort, I know.

As for them sending it to the wrong address despite you providing them the correct address in writing. I honestly don't know but I would suspect that if you can prove you told them the correct address then this would invalidate any claims to have notified you under the Post Office Act, however I would strongly suggest you ask a lawyer who actually works in this area rather than take my word for it as I honestly can't be sure.

atrixblue.-MFR-.

their complaints precedure will be in the insurance document pack you recieved when you took out the insurance.

the OFT or the financial ombudsman will only pick up the case after youve made a direct complaint to the company in question and communication and a resolve has failed.

you would would need ring them again and give them your policy number, and ask to check the address if you havent already changed the address. they will be able to tell you if the address you have now was changed at any point by thier mistake as they would of sent a new policy oput with that address date and time when it was adjusted and then sent. it could very well be that someone called with a similar policy number the call operator misheared typed in error and it happened to be your policy and the customer had a change of address.

ask them to send copy's of the letters with the said dates on, did you pay annually or direct debit? if annually then check your account for the outstanding amount they owe you has been credited if not then demand either they reinstate the insurance cover,reimburse you same if they are continuing to take direct debits for the policy!

Parva

You've still not answered why they actually cancelled it. Yes, you said that they cancelled because you didn't respond to two letters sent to the wrong address and you admit that this was likely due to a recent claim.

There's only half a story here. Why would they cancel after two letters went ignored? Presumably there must have been some significant importance in the claim you had running at the time? Why weren't you wondering why you had heard nothing of this claim?

I suggest that you either tell the full story properly or take your chances on hoodwinking the insurance company with whatever has or has not been said regarding the claim which seems to have triggered this thread.

opinions4u

There's only half a story here.

Spot on.

OP, will you fully explain the insurer's specific reasons for cancelling the policy, providing a little bit more background to the sitution.

esmerobbo

opinions4u wrote: »

Spot on.

OP, will you fully explain the insurer's specific reasons for cancelling the policy, providing a little bit more background to the sitution.

Indeed any advise would need more clarification from the OP.

Wig

It's not the same situation as yours but Co-Op cancelled on me without telling me and I was not a happy bunny, I sent the following. In reply to a first response by them basically fobbing me off with a "we did nothing wrong and no you're not getting any refund" attitude. You might find some of it useful. The letter is a bit amateurish, but I am no wordsmith. They responded to this letter (in quote below) with an apology and a full refund and about £30 compensation added on and my 13year NC letter. But they chose not to respond to any of the issues I had raised. I chose not to persue it any further i.e. did not try to complain to the FSA/FSO whatever.

My_letter wrote:

Dear XXXX

Policy No PM XXXXXXXXX

Thank you for your letter dated XXth January 2010.

I wish to broaden my complaint that you summarised to include:

• I expect that a matter of such grave importance and with such serious consequences would at least warrant a letter sent by Recorded Delivery, which only costs about 70 pence extra, a small cost that you could easily recoup as part of an admin fee.
• You did not send a letter to tell me that my insurance had been cancelled when you cancelled it on 10 March 2009
• You did not send any letters or make ANY efforts to retrieve your Certificate of Motor Insurance
• Your refusal to contact Prudential by telephone to confirm proof of no claims at least in unison with me to provide a physical letter………… Why?
• There is a National Insurance Database which I understand also holds information of No Claims that you could have looked at, and seen that I did have full no claims.

I told your telephone agents in Janary 2009 that in contacting my previous insurer to try to get them to send me the Proof of NC letter, my previous insurer had said “Why doesn’t the Co Op just telephone us and we will tell them you have 13 years?” I asked your agents and they refused to do this. In trying to get the proof of no claims from Prudential, Prudential said they had lost my previous proof that I had supplied. Prudential simply telephoned the Nationwide Insurance, whilst keeping me on hold, and within a couple of minutes they had confirmed by telephone that I left the Nationwide 2 years earlier with 11 years, I had been with Prudential for 2 years, hence 13 years was issued to me. If you had been as sensible as this, none of this would have happened!

The last letter I received from you last year was dated 06 January 2009, asking me for proof of no claims, it was to this letter that I responded by telephone on 08 January 2009 to inform you that I was having difficulty with the Christmas and New Year period getting my previous insurer to issue me a No Claims letter but that it was being dealt with and would soon be on its way to you. I was assured on that phone call that everything was ok and there was no need to panic. A few days later I did send you the proof of no claims. I heard nothing further from you.

In recent conversations with your telephone agents they told me that you had sent me a letter on 06 February 2009 to warn of cancellation. In your letter dated 11 January 2010 you say you also wrote 18 February 2009. I received neither the 06 February 2009 or the 18 February 2009 letters. As you will see from the attached proof of no claims, I do have “full no claims” and therefore had no reason not to forward this on to you, and had no reason to risk having my insurance cancelled.

I accept you cannot be held responsible for a ‘run of the mill’ letter not being received once it has left your building, in the same way you can understand that I did send you my proof of no claims, however, due to the seriousness of the matter I cannot accept that you would not / should not send the letter of 18 February 2009 by recorded delivery and you would not follow that up with a confirmation letter that the cancellation of insurance had now been effected and an instruction to me to return your Certificate.

Further, I need your assistance with the following issues:

1st issue **URGENT**
I need you to issue me a proof of No Claims letter. Please find attached a proof of NC from Prudential, my insurer before you. This letter states I have 13 year NC. I require from you a letter stating 13 years. Would you please let me have this ASAP. If you anticipate any problems with this, please ring me on XXXXXXXXXX. I do need the letter to specifically say 13 years as some insurers do accept new customers with more than the standard 5 or 6 years NC.

2nd issue
I need you to explain how you arrived at the figure of ₤XXXX which you refunded to my card from my original premium.


I look forward to hearing from you.


Yours sincerely

Wig

If I were you, I would ask them the send you a photocopy of the letter they have from you notifying them of the change of address. And point out to them that it did give the correct address, and this is their mistake. If they say they have lost it you should send them a copy of your version which you should have on your computer, (like I still do with my letter above).

As long as nothing has happened whilst you have been uninsured you will be ok. I would be asking them for a full refund of any premium and for it to be pro rata from the date of cancellation with no deductions for cancellation fees etc.

You have not given nearly enough information e.g.

What date was the cancellation effective from?
What reason was given for the cancellation?
What date was the claim incident?
What was the nature of the claim incident?

raskazz

Lum wrote: »

A more general point but there really needs to be a change in the law on this one, requiring them to use recorded delivery as a minimum

If an insurer is exercising their right of cancellation most do send letters by recorded delivery so that all is in order should a complaint arise.

Lum wrote: »

with any cancellation not taking effect until signed for.

That would be ridiculous. It would mean that the insurer could not exercise their right of cancellation where (i) the policyholder ignores their post and did not collect it or (ii) moved address without informing the insurer.

As far as the OP is concerned, we have nowhere near enough information to determine the true position. There must have been a reason for the insurer to use their right of cancellation. It would be helpful if the OP could clarify this.

Wig

raskazz wrote: »

That would be ridiculous. It would mean that the insurer could not exercise their right of cancellation where (i) the policyholder ignores their post and did not collect it or (ii) moved address without informing the insurer.

I would suggest a legal requirement of three recorded delivery attempts before any cancellation can take place, with an envelope marked on the outside in red ink something like:
"WARNING: NOTICE OF IMPENDING MOTOR INSURANCE CANCELLATION"

Why three attempts? To try to guard against recorded mail that does go missing or is not delivered properly.

Plus an enforcement in a similar way of the insurers legal responsibility to recover their certificate. I taxed my car using the certificate they did not bother to ask me for!

vaio

raskazz wrote: »

.......That would be ridiculous. It would mean that the insurer could not exercise their right of cancellation where (i) the policyholder ignores their post and did not collect it or (ii) moved address without informing the insurer.

As far as the OP is concerned, we have nowhere near enough information to determine the true position. There must have been a reason for the insurer to use their right of cancellation. It would be helpful if the OP could clarify this.

Agree about the lack of information but on the general thrust of the thread maybe there should be no right of cancellation without mutual agreement?

Me and my insurance company have agreed a contract of insurance for a given amount and time. I give them the money and they should provide the cover.

Apart from fraud (and then cancellation should require a conviction and/or court order) I can’t see why an insurance company should be able to cancel with impunity any more than I can unilaterally alter a contract at work.

I’m not 100% on the details but I seem to remember a thread on here, company promised “guaranteed NCB for life”, punter fell for it and signed up but then was unfortunate enough to have to make two or three claims within a couple of months and the company cancelled on him.

I’m sure that would qualify as unfair treatment and the FOS would rule for him but, even if he has the intellectual guns, time & energy to pursue to the FOS, a decision would take ages and in the meantime the poor old punter is left trying to rearrange cover with multiple claims and a cancelled policy on his record.