Can a wrongly cancelled insurance policy be reinstated?

Sam3006

Hi,
I'm looking for some help with a well known UK car insurance company. I am trying to keep this post as short as possible but really appreciate any help or opinions. 

This particular policy can only be paid via card mandate and not direct debit. In February this year I changed bank accounts and got a new debit card, in March, I received a letter saying that they haven't received payment and I should contact them within 7 days to avoid the policy being cancelled. I contacted the company, explained the problem and paid the outstanding balance right away, I actually thought it paid via Direct Debit. I also updated my payment details to the new card so the reoccurring payment would not have an issue. The one off payment for the outstanding was taken two days later with no issues.

Fast forward to May, I had been self isolating away from home due to Coronavirus as I am a key worker and didn't want to impact my family at home. I went home a few days ago to find a letter from said dated 30th April stating that my policy had been cancelled due to non payment.

Immediately, I phoned the insurance company as I was furious my car hadn't been insured for the past two weeks and I had not reiceved a phone call or email from them, only a letter. I explained the situation and was told they would look into it and escalate it into a complaint, meanwhile giving me 7 days temporary cover.

Turns out, their payment system had a system fault meaning they was unable to take the payment. The original call recording was listened to and they have concluded that it was an error on their half and they should of done more to contact me.

I've been offered £100 compensation which I have not accepted due to the fact they are telling me my policy cannot be reinstated and that the "only" option is to take a new policy out at a much increased premium. My issue here is that the cancelled insurance policy is going to cause me long term financial problems due to the fact my quotes are nearly doubling when declaring the cancellation. They are going to escalate further but are insisting that it is impossible to remove cancelled policy from records despite the fact I wasn't at fault and also that the policy cannot be reinstated. 

Where do I stand with this? Can a policy be reinstated? (cancelled nearly 3 weeks ago) Can a cancelled policy be removed from records? 

Thank you for reading and please advise if you can. 

Regards 

wongataa

Ask them if the cancellation needs to be declared.  As it was caused by a problem at their end they should say you don't have to declare it.

A policy can be reinstated but it is up to the insurer whether they are willing to do that.

Jumblebumble

Sam3006 said:

Hi,
I'm looking for some help with a well known UK car insurance company (which may or may not be an AVIVA plus policy) . I am trying to keep this post as short as possible but really appreciate any help or opinions. 

This particular policy can only be paid via card mandate and not direct debit. In February this year I changed bank accounts and got a new debit card, in March, I received a letter saying that they haven't received payment and I should contact them within 7 days to avoid the policy being cancelled. I contacted the company, explained the problem and paid the outstanding balance right away, I actually thought it paid via Direct Debit. I also updated my payment details to the new card so the reoccurring payment would not have an issue. The one off payment for the outstanding was taken two days later with no issues.

Fast forward to May, I had been self isolating away from home due to Coronavirus as I am a key worker and didn't want to impact my family at home. I went home a few days ago to find a letter from said dated 30th April stating that my policy had been cancelled due to non payment.

Immediately, I phoned the insurance company as I was furious my car hadn't been insured for the past two weeks and I had not reiceved a phone call or email from them, only a letter. I explained the situation and was told they would look into it and escalate it into a complaint, meanwhile giving me 7 days temporary cover.

Turns out, their payment system had a system fault meaning they was unable to take the payment. The original call recording was listened to and they have concluded that it was an error on their half and they should of done more to contact me.

I've been offered £100 compensation which I have not accepted due to the fact they are telling me my policy cannot be reinstated and that the "only" option is to take a new policy out at a much increased premium. My issue here is that the cancelled insurance policy is going to cause me long term financial problems due to the fact my quotes are nearly doubling when declaring the cancellation. They are going to escalate further but are insisting that it is impossible to remove cancelled policy from records despite the fact I wasn't at fault and also that the policy cannot be reinstated. 

Where do I stand with this? Can a policy be reinstated? (cancelled nearly 3 weeks ago) Can a cancelled policy be removed from records? 

Thank you for reading and please advise if you can. 

Regards 

Have you got the fairy stories that they have told you in writing ?
If not get this then Formal Compliant making if quite plain you will be escalating to the ombudsman  an regulator on the basis that they are not treating customers fairly should see it looked by someone who understands properly
I wonder if they are breaching GDPR by sharing a wrongful Cancellation

TELLIT01

The OP says that they were informed in writing, but that they weren't living at the home address due to the lockdown and their work commitments.  That's a red herring, as the insurer has admitted it was a mistake at their end.  I can understand an insurer declining to reinstate under circumstances where the insured has been at fault for failing to make payment, but refusing when they are the cause of the problem seems perverse.  Get hold of the e-mail, or address, for the Chief Exec and contact them direct.

I did that once, not with an insurance company, and his PA called me within 48 hours and sorted things out within another couple of days.

Sam3006

Hi all, thank you for the replies. Unfortunately, I'm still no further forward with this and have emailed the CEO to complain further. I got a reply pretty quickly but only to say it's being investigated further. 

I'm now at a point where I've gone with another insurer (which happens to be a lot cheaper), I declared the cancellation and explained the situation. Despite everything, I don't even care about compensation, I just want the record removed from whichever database it goes to so that it doesn't effect me in the future. I will post on here if I get an update. I will be going to the ombudsman if it isn't sorted within 8 weeks. 

Sam3006

Positive update, following on from my complaint - they have said that no cancellation is recorded, nor will it on any database. They offered to reinstate my policy at a reduced cost which I've declined as my new insurer is cheaper. Got a little compensation coming my way which is good. 

Also promised me a letter and email stating that the cancellation was their fault, should I ever need it but said I don't have to declare it.

Glad I got it sorted in the end and thanks all for your help. 

Jumblebumble

Sam3006 said:

Positive update, following on from my complaint - they have said that no cancellation is recorded, nor will it on any database. They offered to reinstate my policy at a reduced cost which I've declined as my new insurer is cheaper. Got a little compensation coming my way which is good. 

Also promised me a letter and email stating that the cancellation was their fault, should I ever need it but said I don't have to declare it.

Glad I got it sorted in the end and thanks all for your help. 

Excellent
I am pleased but not surprised that the CEO has arranged for someone to overrule the  first person you spoke to who  talked complete nonsense.

Common sense dictates that anyone who states that it is impossible to correct a mistake means "I don't know how to do this and I don't know how to escalate this to someone who does"