Mis-Sold Mechanical Breakdown Insurance

nephilim3uk

I have been mis-sold mechanical breakdown insurance.

Sept 2010 I received a call offering me this cover, I had been looking into it anyway. I agreed to purchase it after the conversation with the salesman ensured that my Turbo was covered.

Last week I had a suspected Turbo failure and called the insurance company. During the call they asked what was wrong and I said 'suspected Turbo failure' they immediately said not covered and I challenged with details of the sales call. They arranged for a garage to do a diagnosis, but said they would review the sales call.

The next day they call me back, before the garage have completed a diagnosis, and state that they have reviewed the call and agree that I was specifically told that the turbo was covered, therefore I have been mis sold the policy and they have cancelled it and will process a full refund. The garage then rang and confirmed it was the turbo that has failed.

I am really unhappy about this as I bought the insurance in good faith and then they back out leaving me totally uncovered and with a garage bill that will probably sting a lot ! the refund will hardly help.

Do I have any course for action ?

Any thoughts and suggestions greatly appreciated.

dunstonh

Put in a complaint to the seller saying they should cover it as you were told it was covered. If they reject the complaint, you take it to the FOS who are slightly more consumer biased as they consider fairness rather than just law.

nephilim3uk

Thank You Dunstonh

I'll try complaining and let you know how I get on.

magpiecottage

I agree with DunstonH.

If the representative told you it was covered, which they admit, then the insurer seems to have a problem because the Financial Ombudsman Service has said "sales representatives have been held to have at least apparent authority to make promises on behalf of the companies whose products they sell. We have received senior legal opinion that it is therefore difficult to see why someone employed to sell an insurance policy would not have at least apparent authority to make promises on behalf of the insurance company."

This can be seen here. Although it relates to investment performance, the principle still seems to apply.

If you look at case study 92/6 here you will see an example, in this case relating to a jewellery claim, where an insurer was required to pay a claim because a provider's representative incorrectly indicated it would be covered. This case study was actually published by FOS on the day you posted so it is hot off the press.

Holyhead

In 2005 I signed up for a new Peugeot 206. Now I look back on the documents I see there was Mechanical Breakdown Insurance added to the price as a one off figure added to the total value of the car. This was written down in the figures by the sales lady though she never mentioned it at all to us. The document records it simply as MBI. As a novice I didnt have a clue what this was until reseaching it. Does this classify as being mis-sold as we were'nt told of it so we didnt have the choice?

forgotmyname

Holyhead.... Same as your other post.. 7 years and no proof?