Direct Line policy cancellation - claim made but not my fault

dunstonh

The FOS do not consider it unfair.

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

Similarly, the provision that premiums for an annual contract are not refundable if a claim has been paid does not appear to be unfair.

That is the 5th paragraph up from the beginning of the case studies.

paddyk

So insurance company defines 'claim made' in two ways: I made a claim which was third party fault so I do not loose my no claim discount and on the document I received it says 'no claims made in the insurance period'. But when it comes to paying the remaining premium they recognize above claim in different way. I truly think such type of claim shouldn't be taken into account when paying remaining premium as Direct Line had recovered money from other driver's policy.

Quentin

It seems you used your policy and insurer to make this claim, (rather than being passed on to a claim handler when they discovered you were not to blame.)

Next time you are involved in an incident where you are not to blame and a third party is available to claim off consider claiming directly from them rather than using your own policy to claim off.

vaio

dunstonh wrote: »

The FOS do not consider it unfair.

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

Similarly, the provision that premiums for an annual contract are not refundable if a claim has been paid does not appear to be unfair.

That is the 5th paragraph up from the beginning of the case studies.

I can see an argument that refunds should be available even if a fault claim has been made, I can see an even stronger argument for refunds if the claim was non fault and stronger still if the insurer has issued paperwork saying "no claims made"

OP...as #6 complain and if they don't see sense then refer to FOS

dunstonh

The OP is free to complain. They may get lucky if the insurer feels refunding is the cheaper option (cheaper to settle and argue). However, at least the OP knows the FOS position now.

paddyk

Just got back the letter from DL stating more less that they recalculated remaining premium taking into account my point of view and there is nothing remaining to be paid :j:j:j:j:j:j

Thanks everyone for your help :T

vaio

Good result & nice to have an update

dalesrider

paddyk wrote: »

Just got back the letter from DL stating more less that they recalculated remaining premium taking into account my point of view and there is nothing remaining to be paid :j:j:j:j:j:j

Thanks everyone for your help :T

Will have had a lot to do with the fact it would have cost them £500 or £750 if it went to FOS... Even if they won....

vaio

dalesrider wrote: »

Will have had a lot to do with the fact it would have cost them £500 or £750 if it went to FOS... Even if they won....

maybe but I'm sure I remember reading that the first x cases per year are free for an insurer so they would only have to pay if they had already had x unhappy customers who had referred cases to the FOS.

More likely is (and it seems to becoming increasingly common) is they try it on with an "unfair" position and then back down if challenged.

If even knowledgeable financial services insiders like dunstonh would have just "sucked it up" and paid then, as a business plan, it looks like a winner

dunstonh

If even knowledgeable financial services insiders like dunstonh would have just "sucked it up" and paid then, as a business plan, it looks like a winner

What typically happens is that the providers will cave in during the early days but once it becomes known that they are caving in, they then typically put their foot down and decide to go to the FOS to stop opportunistic complaints. The FOS can decide not to charge as well.