kwikfit and NIG

amritajay

My car was insured by Kwikfit.. I had an accident on 25th of july and found out that the underwriter was NIG..

My car's been written off, I received no correspondence from Kwikfit in any way.

I pay my premiums by DD on 22nd of every month. I cancelled my policy on 20th of aug, but the money's been taken out on the 22nd even though there's no car to insure.

If i had not phoned kwikfit, they would have continued to take the money out every month.

As the people who sold me the policy, they had no knowledge of my accident or claim or what had happened to my car.

Its only a measly sum of £25 thats been taken, but I feel cheated and let down.

I have complained to them but noone's called me back.

CAn i go to the FInancial Ombudsman ??

Ian_W

CAn i go to the FInancial Ombudsman ??

If you want - but they will tell you you have to make a formal complaint to the broker/insurer first and then be dissatisfied with outcome before they'll deal with your complaint.

Have you checked what it says on your policy about write-off's? Most I've seen require you to pay the full annual premium if your vehicle is written off - and most monthly schemes are an annual policy simply paid for monthly.

There seems to be a break-down in communication between Kwick Fit who, I guess are a broker, and NIG who are the insurer. I think you'd be better served at this time by trying to mend that than rushing off to the Ombudsman as it's by no means clear you've yet suffered any loss because of it.

amritajay

Ian_W wrote: »

If you want - but they will tell you you have to make a formal complaint to the broker/insurer first and then be dissatisfied with outcome before they'll deal with your complaint.

Have you checked what it says on your policy about write-off's? Most I've seen require you to pay the full annual premium if your vehicle is written off - and most monthly schemes are an annual policy simply paid for monthly.

There seems to be a break-down in communication between Kwick Fit who, I guess are a broker, and NIG who are the insurer. I think you'd be better served at this time by trying to mend that than rushing off to the Ombudsman as it's by no means clear you've yet suffered any loss because of it.

thanks for that!!

yes Kwikfit is the broker.... Did call them and was told that I couldnt get the money back.

amritajay

Ian_W wrote: »

If you want - but they will tell you you have to make a formal complaint to the broker/insurer first and then be dissatisfied with outcome before they'll deal with your complaint.

Have you checked what it says on your policy about write-off's? Most I've seen require you to pay the full annual premium if your vehicle is written off - and most monthly schemes are an annual policy simply paid for monthly.

There seems to be a break-down in communication between Kwick Fit who, I guess are a broker, and NIG who are the insurer. I think you'd be better served at this time by trying to mend that than rushing off to the Ombudsman as it's by no means clear you've yet suffered any loss because of it.

i am going to file a written complaint. When i cancelled the policy, I wasnt told that i would be charged the annual premium. Also they said they had cancelled the DD, but the money was still taken out

Ian_W

amritajay wrote: »

When i cancelled the policy, I wasnt told that i would be charged the annual premium.

Have you checked what the policy says though?
One I recently posted on here stated quite categorically that if your vehicle is a write off the policy is cancelled [so you cancelling wasn't needed] and that the full annual premium was payable.

vikingaero

Ian is correct. In 98% of Policies the FULL annual premium is due in the event of a claim or write off. Some insurers opt not to take any further premiums and deduct the balance due from the final payout.

Unfortunately Amrita, NIG have done nothing wrong. That's how an insurance contract operates even though a lot of people don't realise it.

olly300

amritajay wrote: »

i am going to file a written complaint. When i cancelled the policy, I wasnt told that i would be charged the annual premium. Also they said they had cancelled the DD, but the money was still taken out

There are two different issues here.

Firstly as the others have posted you are liable to pay your full annual premium. Most people who pay their insurance premiums monthly are actually paying a credit company who have already paid the full annual premium to the insurer. (Lots of credit companies are just subsidaries of the broker/insurance company so have similar sounding names.)

Secondly what does the wording of your insurance agreement say? Does it say that the direct debit is under the direct debit guarantee? If so and you have cancelled the direct debit and you do in good time but the money is taken out of your account the fault lies with your bank. While you still owe the money to the insurance company, your bank is not allowed to to give other people your money without your permission. *

I suggest instead of callling all the companies concerned you write to them so there is proof of what is going on.

So write to your broker, Kwit fit, and ask them what they are doing about your situation, and write to your bank and inform them that if you cancel a direct debit again and they allow money to be debited from your account you will take them to the financial ombudsman. Keep copies of all the letters and send them all recorded delivery as unfortunately both insurers and bank are companies who claim not to receive letters.


*I have previously have had trouble with one of the big 5 banks about cancelling direct debits and only when I wrote to them and threatened them with the financial ombudsman did they reimburse me. I subsquently moved my main banking elsewhere. The financial ombudsman has ruled on this here: http://www.financial-ombudsman.org.uk/publications/ombudsman-news/27/27-directdebit-guarantee.htm

amritajay

Thanks for the advice.

The reason why I am confused is that NIG sent me a letter stating that my car's been written off and blah.. blah.

and also that my policy excess and hire purchase would be deducted from the amount that they owe me. No mention of insurance premium whatsoever.

amritajay

Also

when I called kwikfit, ( i have called them many times until now), noone's told me that I owe them the remainder of the insurance premium....

djohn2002uk

You must get it in your head that you took out insurance for a year. It isn't "pay as you go" insurance that you can cancel at any time, it's a contract for 12 months.
The fact that you pay it monthly is immaterial. As someone else pointed out, you are probably reimbursing a credit company in 12 monthly payments for having payed NIG the whole payment up front. They will want that money back from you and if they don't get it because you have canceled the DD, then you could be risking your credit worthiness and jeopardise any future credit that you apply for. Is that really worth it? I doubt it because from the "facts" that you have given us here lead me to believe that you don't have a leg to stand on.