Motorbike Insurance Rip Off/Bennetts

Carolineofscots

Just had to cancel an insurance policy with Bennetts for my fathers motorbike which he has had to sell. He was just over 3 months into the policy and he paid £241.55. Can you believe he is only being refunded £39.43!!!

I called to complain but they told me there was a £30 cancellation fee, that i had lost £29.99 for legal cover, i had lost £34.99 for personal accident cover and i had to pay 60 percent of the policy!!!!!!

I told them i thought it was disgusting and although it may be legal , that it was totally unethical to rip people off in this way. needless to say they wont budge and refused to do anything to help me. they said it wouldnt be fair to others if they gave me money back. Oh yes thats right , lets make sure everyone is ripped off in the same fair fashion!!

:mad::mad::mad:

I found a site about Bennetts but Im afraid as a new user I cant post the link yet but i will add it at a later date. its got pages and pages of complaints about this cancellation scam.

raskazz

Carolineofscots wrote: »

Just had to cancel an insurance policy with Bennetts for my fathers motorbike which he has had to sell. He was just over 3 months into the policy and he paid £241.55. Can you believe he is only being refunded £39.43!!!

I called to complain but they told me there was a £30 cancellation fee, that i had lost £29.99 for legal cover, i had lost £34.99 for personal accident cover and i had to pay 60 percent of the policy!!!!!!

I told them i thought it was disgusting and although it may be legal , that it was totally unethical to rip people off in this way. needless to say they wont budge and refused to do anything to help me. they said it wouldnt be fair to others if they gave me money back. Oh yes thats right , lets make sure everyone is ripped off in the same fair fashion!!

:mad::mad::mad:

I found a site about Bennetts but Im afraid as a new user I cant post the link yet but i will add it at a later date. its got pages and pages of complaints about this cancellation

Nothing sounds out of the ordinary here.

1) Bennetts are a broker so the £30 cancellation fee is theirs to cover their admin. It is certainly in line with the market.

2) It is very common for no return premium to be allowed on ancillary insurances.

3) 60 percent of the policy for 3-4 months sounds about right for bike insurance. Short-term scales tend to be more harsh on seasonal products like bike/classic car/kit car insurance. The reason for this is to deter people from buying policies at the start of the season in spring and cancelling at the end of the season in autumn.

Carolineofscots wrote: »

scam.

If the relevant terms are detailed in the policy wording/summary then there is no scam here.

mikey72

And the other point of view.

Make an official complaint, you should be looking for a pro rata refund, the £30 cancellation fee seems ok though

If the insurer won't play ball, make a complaint to the FOS, and quote their previous ruling on this.

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/54/insurance.htm

As to the ancillary insurances, no one appears to have had a ruling from the FOS either way yet. Complain you are not being treated fairly, as both products were sold with the main insurance, so are worthless without it, and should be refunded accordingly, and as pro rata as well.

The complaint to the FOS is free to you, so you can't lose by it, apart from the cost of a couple of stamps.

For what it's worth, both my kit car, and classic car insurance give strictly pro rata refunds, less a very nominal admin charge.

raskazz

mikey72 wrote: »

For what it's worth, both my kit car, and classic car insurance give strictly pro rata refunds, less a very nominal admin charge.

Are you sure?

You're with KGM for your kit aren't you - here is their specialist vehicle policy summary:

http://www.kgminsurance.co.uk/files/documents/key-facts/specialist-vehicle-v5.pdf

dunstonh

bike insurance is viewed differently to car insurance due to the number of riders that only use their bikes in summer. So, the relatively pro-rata guide does not necessarily apply.

mikey72

raskazz wrote: »

Are you sure?

You're with KGM for your kit aren't you - here is their specialist vehicle policy summary:

http://www.kgminsurance.co.uk/files/documents/key-facts/specialist-vehicle-v5.pdf

That's interesting.
I've not actually re-inured yet, as the old policy hasn't run out yet. I must admit I was going off what the broker said, so I'll be querying that.

The same applies to this years, again quoting the broker, but I've not needed to cancel, but I'll have to dig out the policy to check now.
I did make a mid term change on one, putting on another driver, and that was a pro rata adjustment as they said it would be though, so I had no reason to doubt them.

duncandj

mikey72 wrote: »

And the other point of view.

Make an official complaint, you should be looking for a pro rata refund, the £30 cancellation fee seems ok though

If the insurer won't play ball, make a complaint to the FOS, and quote their previous ruling on this.

As to the ancillary insurances, no one appears to have had a ruling from the FOS either way yet. Complain you are not being treated fairly, as both products were sold with the main insurance, so are worthless without it, and should be refunded accordingly, and as pro rata as well.

The complaint to the FOS is free to you, so you can't lose by it, apart from the cost of a couple of stamps.

For what it's worth, both my kit car, and classic car insurance give strictly pro rata refunds, less a very nominal admin charge.

I've had the same problem as the writer at the top of this thread although I'd already had insurance for a year and been stung with premium increase when i opened the new terms and conditions rolling on into the second 12 months. I'm now paying an extra 30% so looking to change insurance company. If I cancel now I forfeit 40% of the whole amount anyway plus £30 admin change. Even if i sell my bike it's me changing the policy so no leeway. Saw this which gave me some hope... online financial-ombudsman org uk/publications/ombudsman-news/54/insurance.htm

Peelerfart

I used to use Bennett's and have voted with my feet because these charges.

I know there probably all the same but it made me feel better to move insurers

raskazz

Peelerfart wrote: »

I used to use Bennett's and have voted with my feet because these charges.

I know there probably all the same but it made me feel better to move insurers

Bennett's are a broker not an insurer.

Peelerfart

raskazz wrote: »

Bennett's are a broker not an insurer.

I stand corrected

Carolineofscots

Thanks for your response on this - It appears that Rip Off Britain are looking into doing a report on Bennetts and the cancellation fee situation. Ill post if i find anymore on this.