Breakdown policy refund?

nataliesw

I have had a 'repair or replace' policy on a Hotpoint/Indesit washer dryer for a number of years. I pay by monthly direct debit and am about half way through this years policy. My machine has broken down and, after much debate and several weeks waiting, Hotpoint have finally decided my machine cannot be fixed and have arranged for a new one to be delivered. Now the bad news. I was told today that I am being charged the remaining 6 months of the policy, to be paid in one lump sum, and they are cancelling the policy as I no longer have the machine. I clarified that I was hearing them right- they are cancelling my policy as they can't fix my machine but are charging me for the next six months for a machine that I no longer have as they can't fix it! They said, yes, basically. Most other policies, in a similar situation, would refund the remaining months (or not charge me if paying monthly). My car insurance just did when I sold my car. On top of that, I have been charged about £45 delivery (free with many retailers) for a machine they are having to give me as they can't fix mine. I wouldn't have had to pay call out fees to a repair engineer! Where do you think I stand legally with these charges? I don't think I should have had to pay, but had to pay there and then over the phone in order to get my new machine.

deanos

They are paying out hence why you have to pay the insurance off, same as if you had a car written off you still have to pay the insurance

What do the t+c's say in the insurance document ?

bod1467

Is this an annual policy paid monthly, or is it a rolling monthly policy? (Sounds like the former, in which case they are entitled to claim the balance of the year. But unless their T&Cs say they can make a lump sum claim then the monthly DD should continue).

stugib

nataliesw wrote: »

Most other policies, in a similar situation, would refund the remaining months (or not charge me if paying monthly). My car insurance just did when I sold my car.

If you'd have claimed on your car insurance you'd be charged the full annual premium too. You haven't sold the washing machine, you've claimed on the insurance - it's done its job. Unless it is a monthly policy (and the fact they're quoting a 'remaining 6 months' suggests it isn't) then you have to pay the annual premium that was due.

JimmyTheWig

I agree with the aboev that the full year's premiums would be due. To collect them all at once rather than monthly is a bit harsh, though! If this causes you a problem then see if they'll do it monthly for you.

Also to have to pay for delivery for the new machine is a bit harsh, too. I'd complain about that.
But I guess you're getting a brand new machine for £45, so it's not all bad.