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Recovery of admin charge for un-issued motorcycle insurance policy

Un-issued motorcycle insurance policy

I am writing to seek your advice in relation to the internet- sale of a motorcycle insurance policy on 9th May 2013.

The above policy was not due to commence until 18 May 2013. In addition, the company had not issued any formal documentation relating to the policy. The company had therefore not incurred any costs or liability in relation to the above policy.

A record of the exact details of the sale of this policy is shown below:

• I went onto a comparison site on the internet and entered details of the bike I wished to insure on 9th May 2013.
• I answered all of the questions in good faith.
• The policy provided by ****came up as the best value in comparison to my renewal offer.
• I therefore purchased the policy via internet using my debit card.
• Approximately two hours later I received a phone call from one of their sales staff to check the details I had entered on-line.
• I discovered during this conversation that I had incorrectly classified my two accidents as non-fault, as they were not the fault of anyone else and did not involve a claim on another driver’s insurance policy.
• The Salesperson indicated that as a result of checking the wrong box on the electronic form, the cost of the policy would increase by 100%.
• At this point the cost of the policy was not competitive. I therefore asked to cancel the policy with immediate effect.
• The salesperson indicated at this point that I would have to pay a £55 administration fee to cancel the policy. I immediately remonstrated against the application of this charge.
• I have subsequently received a cheque refund of the amount paid less an administration fee of £55.

I do not believe the above practice to be legal, ethical or fair. I have written to the Company directly requesting a refund but have not received a reply or a refund. I would therefore welcome advice on how best to proceed to recover the £55 administration charge.

Comments

  • [Deleted User]
    [Deleted User] Posts: 26,612 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper Photogenic
    allawet wrote: »
    I do not believe the above practice to be legal, ethical or fair. I have written to the Company directly requesting a refund but have not received a reply or a refund. I would therefore welcome advice on how best to proceed to recover the £55 administration charge.
    I think you are wasting your time. You didn't provide the correct information when purchasing this insurance. Any refund of their administration charge will be a gesture of goodwill only.
  • dunstonh
    dunstonh Posts: 121,405 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Firms are allowed to charge administration charges for this. So, what is the problem?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • magpiecottage
    magpiecottage Posts: 9,241 Forumite
    1,000 Posts Combo Breaker
    dunstonh wrote: »
    Firms are allowed to charge administration charges for this.

    Provided it is declared in a way that is clear, fair and not misleading.
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