Can I cancel insurance mid-term if provider change their cover even if I have claimed?

Richard1212

I read the ill-worded policy provisions same as DullGrey. I really think you need to talk to them on phone, no matter how "difficult" they have been in the past. Not a great advert for a company which throws round their Martin Lewis recommendation like confetti.

outtatune

benwrigley said:

user1977 said:

Have they actually changed their cover?

They have said that they will be in the near future as they had misunderstood their agreement with the underwriters and so are now revising the terms. At the moment the terms are great for me and I want to stick with them and then cancel if/when they change the terms.

Then when they do so they will outline your options. I would wait until then.

DullGreyGuy

benwrigley said:

DullGreyGuy said:

Are you paying monthly?

Its poorly drafted but appears you cancel at any time just the difference is a cancellation in the cooling off period gets you a full refund if no claims have been made whereas a cancellation after that doesn't generate a refund.

Yes I'm paying monthly. And I read it the same as you, but that would mean I could in theory claim all my benefits in the first month (which would be hundreds of pounds as there are three people on the policy) and then cancel without repaying anything. I'm surprised there isn't more written in to protect the company which then made be doubtful of my cancellation rights.

Yes you could, if you are buying it directly from them.

I suspect however most customers are getting it via an employee benefit and the employer may have rules about how often you can change your benefits. Last time I was employed by a big company you chose your benefits for 1 Apr each year and could only change them if you had a "life event" (baby born, death of spouse etc).

For each person that reads the policy, understands the terms and is able to game it there are probably multiple customers that have forgotten they even have it, don't understand it etc and are endlessly paying in without making any claims. 

You'd need to read the clauses around pre-existing conditions though if your intention is to attempt to do this each year. 

benwrigley

outtatune said:

benwrigley said:

user1977 said:

Have they actually changed their cover?

They have said that they will be in the near future as they had misunderstood their agreement with the underwriters and so are now revising the terms. At the moment the terms are great for me and I want to stick with them and then cancel if/when they change the terms.

Then when they do so they will outline your options. I would wait until then.

Thanks, but unfortunately if I do that, it could leave me open to either sticking with a policy I'm then unhappy with, or having to refund what I have already claimed. So for me, it's important to understand my rights beforehand.

benwrigley

DullGreyGuy said:

benwrigley said:

DullGreyGuy said:

Are you paying monthly?

Its poorly drafted but appears you cancel at any time just the difference is a cancellation in the cooling off period gets you a full refund if no claims have been made whereas a cancellation after that doesn't generate a refund.

Yes I'm paying monthly. And I read it the same as you, but that would mean I could in theory claim all my benefits in the first month (which would be hundreds of pounds as there are three people on the policy) and then cancel without repaying anything. I'm surprised there isn't more written in to protect the company which then made be doubtful of my cancellation rights.

Yes you could, if you are buying it directly from them.

I suspect however most customers are getting it via an employee benefit and the employer may have rules about how often you can change your benefits. Last time I was employed by a big company you chose your benefits for 1 Apr each year and could only change them if you had a "life event" (baby born, death of spouse etc).

For each person that reads the policy, understands the terms and is able to game it there are probably multiple customers that have forgotten they even have it, don't understand it etc and are endlessly paying in without making any claims. 

You'd need to read the clauses around pre-existing conditions though if your intention is to attempt to do this each year. 

Thanks again. yes that was meant more to be illustrative, not my actual intention

In terms of the pre-existing, that only affects any hospital stays according to the policy, which is another plus point.

And yes, I used to have employers cover, but self-employed now, I'm wanting/needing to be more diligent about what I purchase. 

DullGreyGuy

benwrigley said:

DullGreyGuy said:

benwrigley said:

DullGreyGuy said:

Are you paying monthly?

Its poorly drafted but appears you cancel at any time just the difference is a cancellation in the cooling off period gets you a full refund if no claims have been made whereas a cancellation after that doesn't generate a refund.

Yes I'm paying monthly. And I read it the same as you, but that would mean I could in theory claim all my benefits in the first month (which would be hundreds of pounds as there are three people on the policy) and then cancel without repaying anything. I'm surprised there isn't more written in to protect the company which then made be doubtful of my cancellation rights.

Yes you could, if you are buying it directly from them.

I suspect however most customers are getting it via an employee benefit and the employer may have rules about how often you can change your benefits. Last time I was employed by a big company you chose your benefits for 1 Apr each year and could only change them if you had a "life event" (baby born, death of spouse etc).

For each person that reads the policy, understands the terms and is able to game it there are probably multiple customers that have forgotten they even have it, don't understand it etc and are endlessly paying in without making any claims. 

You'd need to read the clauses around pre-existing conditions though if your intention is to attempt to do this each year. 

Thanks again. yes that was meant more to be illustrative, not my actual intention

That's fine either way... plenty that work in the insurance world that are happy leveraging the weaknesses in certain policies. 

Many years ago now worked for an intermediary who sold a range of insurance products including Excess Insurance. One day reading the policy wording I noted it stated that the Excess Insurance policy must have been in place prior to the claim being made on the underlying Home, Motor, PMI etc policy. 

This creates a problem, I can have an accident or find out I need medical treatment and as long as I buy the excess insurance prior to making the claim on my other policy it will reimburse me. Clearly a major weakness and some poor drafting. Pointed it out to the Chief Underwriting Officer of our company, not the providers of the policy who'd created the wording, and he nodded and said he'd be letting them know in a few of weeks after he'd bought a policy and then claimed the £1,500 excess he had on his PMI for an operation in a couple of weeks.  In that time frame I too had cause for needing to make a claim so bought it and reclaimed the excess