Unfair change of excess?

bram2000

Hi All,

I've been a loyal customers of a particular well known insurance provider for the last 12 years, they have always been pretty good to me, until now. Last week my GF's bike was stolen, and upon trying to make the claim, it came to light that our excess had been increased from £50, as it has been as long as I can remember, to £350. The reason cited for this increase was that we made 3 claims in 2010 (which we did - I was burgled twice).

I was pretty upset about this, as it was never made clear to us during the (automatic) renewal that our excess was being increased. At this point I downloaded my policy document to take a look, and I was shocked with what I found.

The standard policy section of the document stated three times that an excess of £50 applies to any claims - pretty much this whole section looks the same as it always has done. Elsewhere in the document, in a special section titled "Special terms and conditions applicable to your whole policy", there is a single line stating: "In addition to any Excess shown in your Statement of Insurance, any claim is subject to a further Excess of £300".

As far as I'm concerned that's deliberately misleading, as the policy document could easily state the total excess value of £350 in all relevant sections of the document. I'm currently engaging with the complaints process of the insurer, but would like to know people's thoughts on whether or not Endsleigh have any obligation to make such changes clear to customers, as burying the detail in small print seems like something that could easily be argued as unreasonable and unfair.

Thanks,
Jon

paddedjohn

To be blunt, you should have read your policy documents when you received them, too late to complain now.

Arg

No it isn't.

weejonnie

The insurance company have a duty to point out any changes to policy cover to the insured - thus the onus of responsibility is on the insurer, not the policyholder to find out if their cover has changed.

This is clearly stated in the FSA ICOB procedures - now they have been supplemented but the TCF (Treating customers fairly) principle applies.

If the renewal letter has not drawn the client specifically to this change when it was implemented then the client has grounds for a complaint.

bram2000

I absolutely realise that I should have read the documents thoroughly (hind-sight is great), but my real cause for complaint is exactly as weejonnie states - I believe it's their responsibility to make such changes absolutely clear and explicit to me.

Assuming their complaints team just dismisses me (as I'm sure they will), what would the next appropriate course of action be?

Thanks all!
Jon

skintandscared_2

Aside from the policy document (usually a huge document with tiny writing which I expect very few people actually do read cover to cover), do you not have a certificate of insurance which you receive every year? That should clearly state on it the excess you are expected to pay.

weejonnie

The complaints procedure is in the policy booklet (at least it better had be! If not try the website) Generally the company have to acknowledge your complaint within 1 week, make a reply in 4 weeks and a final reply in 8 weeks. The final reply will enclose a leaflet on how to go thrrough the FOS.

In view of the small amount there is a very good chance you will accommodated by the insurer (as it costs them £300+ to use the FOS win or lose - as a broker this gripes me as the industry is open to vexatious claims and blackmail, if some unscrupulous people realise it)

Quentin

skintandscared wrote: »

...... do you not have a certificate of insurance which you receive every year? That should clearly state on it the excess you are expected to pay.

Unnecessarily patronising!

Who has told you that bit of nonsense? (They have mislead you!!!)

(Any excesses you have agreed to pay are NOT required to be stated)

Quentin

weejonnie wrote: »

In view of the small amount there is a very good chance you will accommodated by the insurer (as it costs them £300+ to use the FOS win or lose - as a broker this gripes me as the industry is open to vexatious claims and blackmail, if some unscrupulous people realise it)

Why should you a "broker" get "gripes" over this?

(And again your facts are wrong - insurers get 3 cases free a year, then they are charged £500 a time, though vexatious complaints should be spotted and thrown out)

rs65

Quentin wrote: »

The RTA defines what should be "clearly stated"! (Any excesses you have agreed to pay are NOT required to be stated)

I assumed we were talking about home insurance here. There should be a schedule issued each year.

To the OP, do you have the renewal invitations since the 3 claims you had? When the excess was applied it should have been clear. Most renewal notices I have had show any changes being made whether they are personal to me or apply to all.

The important bit is how clear the change of excess was when it was first applied and any subsequent renewals if there have been any.

ps The policy document couldn't easily state the £350 excess as it applies to everyone - the schedule, including endorsements, is then personal to you.

Quentin

rs65 wrote: »

I assumed we were talking about home insurance here. There should be a schedule issued each year.....

Exactly!

The patronising post (#6) asking the Newbie OP "does he not get a certificate every year" doesn't help at all!

(Though you are right regarding the RTA not being involved in what it says on a home onsurance certificate regarding excesses! I get confused!!)