Not paid renewal fee but still have policy?

Delton · 20 March 2013 at 12:26PM

Hi all

We had contents insurance which was due to renew and had a letter saying if we were happy with things it would auto renew and they'd take payment from the details they had on file. At the time we were happy with things so assumed all had gone through.

Now, several months later we have found that the card used for payment had expired so no money was taken - but we still have the policy in place and has not been canceled.

We did get an email from them about the non payment but only found it in the spam box after searching for it after they told us when it was sent. We had nothing in writing however via snail mail.

I understand its our fault for not monitoring things re the payment but as the policy is not yet canceled and we need to make a small claim, how do we stand legally?

And why if payment has not been made have they not wrote to us informing us of non payment and cancelled this policy?

Captain_Shambolic · 20 March 2013 at 12:28PM

I'd think they'd probably honour the claim provided you paid the renewal, as for why they haven't contacted you I'm honestly not sure, you'd probably need to ask the company as several months is a long time.

Delton · 20 March 2013 at 12:32PM

I forgot to say that they won't deal with the claim as it been so long ago that we should have paid.

Fair enough, but when i ask why is the policy still active and not canceled (as they legally have to do in writing), they don't really give me any answer.

Captain_Shambolic · 20 March 2013 at 12:43PM

So just to clarify, the claim was long enough ago that you are now with another company? Really not sure then, I guess this is the bat signal for one of the more active insurance folk on here.

Delton · 20 March 2013 at 12:49PM

Captain_Shambolic wrote: »

So just to clarify, the claim was long enough ago that you are now with another company? Really not sure then, I guess this is the bat signal for one of the more active insurance folk on here.

No, we assumed we had insurance with the company as we had a letter saying it would auto renew several months ago. It now seems we still have the same policy with the same company but as it wasn't paid, we are not covered now to make a claim with them. They wouldn't let me pay the annual renewal fee either yesterday but said nothing about cancelling the policy.

I just don't understand why they have not cancelled our insurance if we didn't make our annual payment last year.

Captain_Shambolic · 20 March 2013 at 12:52PM

Okay, obviously I got confused, sorry.

What reason did they give for not allowing you to pay the renewal fee? I'll be honest I've no clue why they haven't cancelled your policy and that's something you need to establish.

Delton · 20 March 2013 at 1:01PM

Captain_Shambolic wrote: »

Okay, obviously I got confused, sorry.

What reason did they give for not allowing you to pay the renewal fee? I'll be honest I've no clue why they haven't cancelled your policy and that's something you need to establish.

There was no reason given really except the amount of time (8 months ago) between when the payment was due and now and a "system error".
Apparently we opted for email coms as our preferred choice with the company and did find the email (again in spam box) saying our payment had been declined due to an expired card which also says:

"We must inform you that failure to maintain instalments could result in the cancellation or voidance of your policy in accordance with policy terms and conditions."

Again the above statement is fair enough as we haven't paid on time but there has been no further emails or letters since. The policy is still in place and has not been voided or cancelled.

Surely you would think if payment hasn't been made, any other company would have cancelled or voided the policy?

It is because they said yesterday that we do have a policy still in place that we might have something to go on...?