Ladybird Insurance - Cancellation Charge before Policy start date

paddyandstumpy

The key facts and policy book belong to the insurer, the fee is charged by the broker.
As I mentioned the Broker will still have to pay the comparison site for you purchasing that policy. That would have been paid from the commission which forms part of the premium you paid. As you've cancelled, they've recouped that cost.
The fee is only charged as you've cancelled.

pvt

paddyandstumpy wrote: »

The key facts and policy book belong to the insurer, the fee is charged by the broker.
As I mentioned the Broker will still have to pay the comparison site for you purchasing that policy. That would have been paid from the commission which forms part of the premium you paid. As you've cancelled, they've recouped that cost.
The fee is only charged as you've cancelled.

Except the policy was not bought "online", it was bought as a result of the subsequent telephone call.

And had the telephone call taken place and DD decided not to pay up and take the policy, are you suggesting the broker would then be £50 out of pocket for the referral fee?

So there must be a mechanism for the broker to say "this referral resulted in a sale - here's your £50" and "this referral did not result in a sale - go swivel". Because that's what happens with cashback sites like Topcashback and Quidco.

I think there's a world of difference between cancelling a policy because of a change of mind or change of circumstances, and cancelling a policy because you're not happy with exclusions and conditions in the policy wording you hadn't had an opportunity to see until you paid up.

As regards who bears the loss - it comes down to whether the broker is acting as DD's agent or the insurer's agent. My argument is that, if it's the former, DD wasn't made aware of that.

rs65

pvt wrote: »

So you feel a cancellation fee you were not aware of at that point would still be reasonable?

My understanding is that they cannot enforce a fee that you were not previously aware of.

rs65

paddyandstumpy wrote: »

Why would you think a Broker is obliged to tell you that they are a Broker?

You have to be joking? The relationship between parties is fundamental.