Insurance over the phone - what constitutes the contract

j_e_e

Short version

When I buy insurance via a phone or website, which takes precedence - the details from the call (lets stick with the case of a call for now) or the details in the policy documents that I subsequently receive? 

Long version

So, today I received an insurance renewal for my motorbike. This policy was set up on the phone one year ago. I received policy docs at that time, checked them and all was correct.  My insurance provider does not issue a second set of documents at renewal - what they send in the renewal email is the full set for the year. In checking the renewal docs,  I noticed that a mileage limit was not present where it was in the prior year.  On calling the insurer to check the issue, I pointed out to the agent handling my call that surely as far as claims go they would not be able to refuse a claim on the basis that I drove beyond the mileage limit at the time of a (fictitious) accident if the policy docs had dropped that clause. The agent said: 

No - if you agreed that point on the original call then we would find that out when we reviewed the call tapes and that agreement would stand.

Logically, if the call has precedence then

1. why bother with the paperwork,
2. the insurance company should send me a copy of the call transcript for my records as my 'copy' of the contract,
3. since they don't call me at renewal then how can we rely on a single call from 1, 5 or 20 years ago when insurance law and thus policy documents change over time,
4. if the call has precedence then when the underwriter wanted to change a clause we would need to repeat the call to establish our mutual acceptance of the new terms, etc. 

Clearly unworkable. So I think the insurance agent is wrong and the policy documents they send me are the sole basis for our contract. Am I right ?

Setting aside the nonsense above, assuming the call is, in fact, superseded by the issuing of the policy documents, is there not a risk that the policy documents differ in some way from the agreement on the call ? And how does that work in practice when say I make a claim against the policy and

1. the difference is in my favour, or
2. the difference is in the insurers favour?

Which version of the policy docs?

Finally, what proof do the insurance company have that I received the documents from them since there is no proof of delivery such as would be the case with signed-delivery postage. This thought comes about when you consider having to make a claim,

1. the insurer declines the claim under some clause in the docs,
2. I say that clause is not in my copy of the documents,
3. they claim to have sent a revision to the policy 3 weeks ago,
4. I claim not to have received it and say on the basis of the revision I would have considered the insurance did not meet my needs and sought cover elsewhere.

This is a legal he-said / she-said but where would I stand ? I have always considered the 'if we do not hear from you we will assume you have received this communication' approach to be flawed in practical terms, and even more so now that we rely on important document delivery via email which can frequently fail, and as attachments which can be edited / tampered with.
 
Foot note: The above is all fictitious, there is no current claim. It all came about because of the missing mileage limit and the subsequent position of the insurance co.

Ditzy_Mitzy

I've read through and can't quite work out what you want to know - has the insurer removed the mileage limit from the insurance policy, in year two, or not?  If it's gone then great, you've got enhanced cover!  If it's not gone then you need to ask for revised documents reflecting that it's in place.  

Old_Lifer

You're not alone.    I too am puzzled by the post.

Motor insurance is not a long term contract.  The Insurer may alter the terms at renewal and you can either accept those terms or go elsewhere for cover.

j_e_e

Ditzy_Mitzy said:

I've read through and can't quite work out what you want to know - has the insurer removed the mileage limit from the insurance policy, in year two, or not?  If it's gone then great, you've got enhanced cover!  If it's not gone then you need to ask for revised documents reflecting that it's in place.  

Thanks for your kind response. Think of it objectively - on the initial call you agree with the insurer some feature is to be IN the insurance; next year your renewal documents are issued WITHOUT that feature being present. Is the feature active or not ? The agent stated the missing feature was active despite being missing from the renewal document. Was the agent right or wrong ?   

j_e_e

Old_Lifer said:

Motor insurance is not a long term contract.  The Insurer may alter the terms at renewal and you can either accept those terms or go elsewhere for cover.

Thanks for your timely response. That was my question regarding the method of revision of the contract. Objectively, I suggest that relying on email for proof of delivery from the insurers point of view is false because email can so often fail to be delivered. So who is in the right in a disputed claim where the insurer says they modified the agreement and the cause of the claim is now outside the scope of the contract, stating that they notified the insured party previously of the change and heard nothing back in response so assumed the change was accepted.

Ditzy_Mitzy

j_e_e said:

Ditzy_Mitzy said:

I've read through and can't quite work out what you want to know - has the insurer removed the mileage limit from the insurance policy, in year two, or not?  If it's gone then great, you've got enhanced cover!  If it's not gone then you need to ask for revised documents reflecting that it's in place.  

Thanks for your kind response. Think of it objectively - on the initial call you agree with the insurer some feature is to be IN the insurance; next year your renewal documents are issued WITHOUT that feature being present. Is the feature active or not ? The agent stated the missing feature was active despite being missing from the renewal document. Was the agent right or wrong ?   

I've had a look at my own car insurance renewal letter and that instructs the recipient to thoroughly check the documentation and contact the insurance company if there's anything amiss.  It also warns that failure to do so may result in the policy being voided.  In this case you suspected there was an error on the paperwork and have spoken to the insurance company, which has confirmed that there was indeed an error.  I expect the insurer will shortly send you revised paperwork and cannot understand why you feel the agent has made a mistake.  You expected the policy to have a mileage limit, the insurance company's agent confirmed that there is a mileage limit, therefore the only thing wrong is the renewal pack. 

Old_Lifer

Towards the end of the insured period,  the Insurer would have written to you with  any revised terms and the premium for the coming  year.     You are deemed to have accepted  the revised terms if you continue paying premiums.

j_e_e

Ditzy_Mitzy said:

I've had a look at my own car insurance renewal letter and that instructs the recipient to thoroughly check the documentation and contact the insurance company if there's anything amiss.  It also warns that failure to do so may result in the policy being voided.  In this case you suspected there was an error on the paperwork and have spoken to the insurance company, which has confirmed that there was indeed an error.  I expect the insurer will shortly send you revised paperwork and cannot understand why you feel the agent has made a mistake.  You expected the policy to have a mileage limit, the insurance company's agent confirmed that there is a mileage limit, therefore the only thing wrong is the renewal pack. 

That's kind of my point. If I had overlooked their error, who would be liable in the case of the claim ? Could the insurance company insist, where I had exceeded the mileage limit, that I cannot claim - or could I insist that they should pay out because the clause was not present in the current agreement?  Why should I be liable for their error - for all I know they have removed their limitation on mileage.

j_e_e

Old_Lifer said:

Towards the end of the insured period,  the Insurer would have written to you with  any revised terms and the premium for the coming  year.     You are deemed to have accepted  the revised terms if you continue paying premiums.

Which is my point - by issuing new terms that leave out the mileage feature they are issuing new terms. From what you say then, the new year's renewal documentation is the basis of the new contract and replaces any prior agreement. Ergo the agent at the insurance co with whom I talked was wrong. 

rs65

j_e_e said:

That's kind of my point. If I had overlooked their error, who would be liable in the case of the claim ? Could the insurance company insist, where I had exceeded the mileage limit, that I cannot claim - or could I insist that they should pay out because the clause was not present in the current agreement?  Why should I be liable for their error - for all I know they have removed their limitation on mileage.

Their error would have gone in your favour

rs65

j_e_e said:

In checking the renewal docs,  I noticed that a mileage limit was not present where it was in the prior year.  

Was the field missing?  Or was it there and said 0 miles?
If it wasn't shown at all then safe to assume it no longer applies

Was it a limit or an estimate?