No Claims Bonus after a Non-Fault Accident

BBLP

I had an accident just before my car insurance was due for renewal. I renewed with a different company and said I had no no claims bonus (as advised by my previous insurers) and obviously I told them about the ongoing claim.

Now I am almost halfway through the new policy and the claim is *hopefully* about to be settled (with me not at fault) - my previous insurers have advised that if this happens, they will reinstate my no claims bonus as of the expiry date of their policy.

What should happen with regards to my new policy and my no claims bouns?

Thanks in advance for all advice :-)

Labman_2

Contact your new insurance company & inform them your NCB has now been reinstated (they will probably ask for proof) & you should be reimbursed any extra you had to pay.

BBLP

Thanks for your quick reply :-)

The reason I posted this is that my current insurers have said when/if they receive the proof of my no claims bonus, they will HAVE to cancel my policy. (They will quote me for a new one though.) This means that I will not accrue any no claims bonus for the time that I have this policy.

Has anyone else heard of this before? And do they have the right to do this?

raskazz

BBLP wrote: »

Thanks for your quick reply :-)

The reason I posted this is that my current insurers have said when/if they receive the proof of my no claims bonus, they will HAVE to cancel my policy. (They will quote me for a new one though.) This means that I will not accrue any no claims bonus for the time that I have this policy.

Has anyone else heard of this before? And do they have the right to do this?

It does sound a little odd, but it may be correct.

On the one hand, there are many underwriting schemes that do not cover risks where no NCD is applied or where 3 or 4 years NCD have not been accumulated. But it is relatively unusual for a scheme to not allow NCD.

BBLP

BBLP wrote: »

Thanks for your quick reply :-)

The reason I posted this is that my current insurers have said when/if they receive the proof of my no claims bonus, they will HAVE to cancel my policy. (They will quote me for a new one though.) This means that I will not accrue any no claims bonus for the time that I have this policy.

Has anyone else heard of this before? And do they have the right to do this?

My insurers are the Post Office - they say this is down to the underwriters. The policy is underwritten by Fortis - I have spoken to them and they say they don't know anything about cancelling the policy.

Has anyone been told this by their insurer's before? And if yes, did you accept it or fight it through their complaints procedure?

All advice/comments will be gratefully received - please help!!

raskazz

BBLP wrote: »

My insurers are the Post Office - they say this is down to the underwriters. The policy is underwritten by Fortis - I have spoken to them and they say they don't know anything about cancelling the policy.

Has anyone been told this by their insurer's before? And if yes, did you accept it or fight it through their complaints procedure?

All advice/comments will be gratefully received - please help!!

What you should ask Fortis is whether they have any underwriting schemes that do not allow NCD to be reinstated mid-term to a policy with 0 years NCD. If they answer 'no' then something very fishy is happening with the Post Office.

If the underwriting scheme you have been placed on does not allow NCD to be reinstated (which, as I say, would be fairly unusual) then, if you informed the Post Office that NCD had been temporarily reduced due to an ongoing claim, they have clearly placed your risk incorrectly and then there would be probably be two ways of taking things forward:

1) To cancel the current policy, set up a new policy with the NCD applied, and to ask the Post Office for compensation due to the time spent working towards NCD so far this year which would then be lost; or

2) Ask the Post Office to continue the cover as normal until renewal with 0 years NCD, but to compensate you the equivalent amount of the reduction that you would have recieved if the NCD had been reinstated. Then reinstate NCD at your next renewal.

BBLP

Fortis have said they have never heard of an insurer cancelling a policy because of the reinstatement of no claims bonus. (My previous insurers have said the same.)

The Post Office say that it is impossible for them to alter the no claims bonus on my existing policy and that is why they have to cancel it.

I absolutely definitely (!) told the Post Office about the ongoing claim when I got the quote and when I accepted the policy - both over the telephone. I also advised that the accident wasn't my fault and asked what would happen when my no claims bonus was reinstated - I was told I would get a partial refund (as I paid in one go). Absolutely no mention of not being able to add the no claims bonus on or of them cancelling the policy before its expiry.

The only solution they have offered me is this:
They cancel the existing policy and send me a pro rata refund. They start a new (12 month) policy for me with my reinstated no claims bonus included. When it gets to the date my original policy would have expired, the new policy is cancelled and they then offer me proof of no claims (reinstated amount plus one year).

I'm not happy with this because it will cost me much more than I was previously told. (I paid approximately £570 when it would have cost me about £320 with my no claims included - so I was expected a refund of about £250 with the policy continuing to full term.)

raskazz

BBLP wrote: »

The Post Office say that it is impossible for them to alter the no claims bonus on my existing policy and that is why they have to cancel it.

I absolutely definitely (!) told the Post Office about the ongoing claim when I got the quote and when I accepted the policy - both over the telephone. I also advised that the accident wasn't my fault and asked what would happen when my no claims bonus was reinstated - I was told I would get a partial refund (as I paid in one go). Absolutely no mention of not being able to add the no claims bonus on or of them cancelling the policy before its expiry.

The only solution they have offered me is this:
They cancel the existing policy and send me a pro rata refund. They start a new (12 month) policy for me with my reinstated no claims bonus included. When it gets to the date my original policy would have expired, the new policy is cancelled and they then offer me proof of no claims (reinstated amount plus one year).

I'm not happy with this because it will cost me much more than I was previously told. (I paid approximately £570 when it would have cost me about £320 with my no claims included - so I was expected a refund of about £250 with the policy continuing to full term.)

Don't accept this offer. Raise a complaint with the Post Office, in writing, by recorded delivery, explaining what you were told when you set the policy up. They will almost certainly have a voice recording of the relevant call.

I suggest writing because it sounds as if your case has progressed past what the average call centre adviser or supervisors can deal with adequately; so don't bother calling again until your case is allocated to a specific point of contact in the PO's complaints department. It may take longer to resolve the issue, but you will have much less hassle in my experience if you deal with these things in writing.

It also means that if you raise the issue as an official complaint then the PO has to adhere to the FSA's timescales on complaint resolution.

BBLP

Thanks raskazz for all your help & advice. The complaint letter is in the (recorded) post - I'll keep you updated.

*Fingers crossed*

BBLP

PS - I'm still very interested to know if anyone has been in a similar position...?