Car Insurance Co. Reducing NCB when no claim made with them!

b1gdeano

Good Morning folks,

I am after some advice please

Me and the other half were involved in a crash in her vehicle in March this year, which was the result of someone crashing into the back of us while we were stationary in a queue of traffic.

The accident was witnessed by police, and the man who hit us admitted liability for the accident, and was questioned under caution by the police afterwards.

His insurance company paid for the repairs on her car, and I THINK his insurance company is dealing with the injury claim that is still ongoing - I am not 100% on that point if it is his or ours that initiated the compensation claim.

Anyway, her insurance is due for renewal and we have been told by her insurance that they have reduced her NCB down to 3 years due to the claim!

I didnt think they could do this if you werent at fault, and the other party took liability for it? All costs have been paid by HIS insurance not hers, and the claim wasnt made to her insurer, but everything was arranged through his.

Her insurer told her it was because there was a "claim" open that wasnt settled and they couldnt close it as she may claim in the future?! Due to this she must lose 2 year NCB??

Is this right? It sounds like they are trying it on to me, as all costs would be recoverable from the other party - therefore NCB should be kept intact

Advice please?

nidO

b1gdeano wrote: »

I am not 100% on that point if it is his or ours that initiated the compensation claim.

b1gdeano wrote: »

All costs have been paid by HIS insurance not hers, and the claim wasnt made to her insurer, but everything was arranged through his.

This is the key point you need to check.
If you made the injury claim through your insurer, you will lose your NCB until the point that the claim is actually settled by the third party's insurer, while it is ongoing your insurer effectively have a claim against them from you, so reduce your NCB accordingly.

b1gdeano wrote: »

Her insurer told her it was because there was a "claim" open that wasnt settled and they couldnt close it as she may claim in the future?! Due to this she must lose 2 year NCB??

As above.

b1gdeano

nidO wrote: »

This is the key point you need to check.
If you made the injury claim through your insurer, you will lose your NCB until the point that the claim is actually settled by the third party's insurer, while it is ongoing your insurer effectively have a claim against them from you, so reduce your NCB accordingly.



As above.

Thanks for the reply, I will check the details with her to find out exactly who initiated the compensation claim.

Going on that however, how would the claim ever be liable for her insurer? With him admitting liability there is no way his insurer could NOT pay it, and as said they have already paid up and repaired her car for us.

Surely once he has admitted liability then all costs go to his insurer regardless, so the NCB would be maintained?

Aretnap

The insurer will generally regard the claim as open until it's actually been settled and all the money has changed hands. Until then there's always an outside chance that something will complicate things, even if it's extremely unlikely (as in your case).

Once the claim is finally settled in your favour they should reinstate your NCB and refund any extra premium you've paid as a result of temporarily losing it - it's worth getting them to confirm that they'll do this.

InsideInsurance

You need to triple check who exactly you have claimed off etc

Aretnap wrote: »

The insurer will generally regard the claim as open until it's actually been settled and all the money has changed hands. Until then there's always an outside chance that something will complicate things, even if it's extremely unlikely (as in your case).

Once the claim is finally settled in your favour they should reinstate your NCB and refund any extra premium you've paid as a result of temporarily losing it - it's worth getting them to confirm that they'll do this.

Assuming the OP is dealing directly with the TPI for all elements then the above would not be correct. Insurers will keep their files open for typically 6 months to see if they are approached at all and assuming they arent then they will close their files and reinstate NCD with the caveat that this will be reversed if they are approached in the future. This happens even if the claim is ongoing directly with the TPI if their ph is dealing directly with the TPI

The reinstatement and refunded extra premium etc only 100% applies if you stay with the same insurer. If you decide to switch insurers you need to check with them BEFORE buying that they will honour the higher NCD if it is reinstated and then you'd have to manually update them (and probably provide evidence) when it happens.