No claims discount - rejected by Aviva

MrMagic

Just wondering whether anyone has an opinion on this. 

I'm facing the forfeiture of my new insurance policy next week (with a penalty fee of at least £50 for the privilege) - or alternatively the forfeiting my NCD in addition to incurring an additional premium of over £145 to remain insured.

To explain -

I was previously insured with Liverpool Victoria, but because they wished to up the premium (I know they all have this year) I looked elsewhere and I found a slightly more affordable deal with Aviva. 

The former LV policy covered three different family members residing at the same address, of which I am one. The LV insurance option was chosen after consulting LV last year because it offered the least expensive option for all family members.

The LV policy confirmed those on the policy would earn NCD in our own right as main drivers of different vehicles. We all owned and continue to own our vehicles. The policy was formally taken out by father, but with me stated individually as the main driver (and owner) of the single vehicle I use. I understood that any NCD earned would be in my own name, so I was satisfied with this arrangement.

One of the steps after purchasing and changing to the Aviva policy was to provide proof of my no claims discount (a single year). This was via the renewal letter from the previous insurer, which shows my NCD stated separately. The letter confirms - "This can be used as proof of your NCD, if another insurer asks for confirmation". It also refers to me as the "main driver" of my vehicle and the "1-year NCD" earned by me on this vehicle.

When I submitted it I received the following email from Aviva -

"Thank you for uploading your proof of NCD. Unfortunately, we can’t accept it because it shows that the NCD wasn't earned in your own name. We only accept NCD earned by you as a main driver of a vehicle on an insurance policy."

Because the renewal letter states the NCD was earned in my own name (it clearly shows my own NCD, stated separately from others on the policy) and that I was a main driver and owner of my vehicle, I pointed this out to Aviva.

Then a different response -

"If you have proof of NCD in your own name as the policyholder or have recently changed your name, please upload your latest renewal invite...."

I am automatically assuming I'm stuffed here because i've somehow missed an important technicality in the policy details document - I'm guessing something along the lines of it preventing me using the NCD because my father is the formal policy holder, despite my independent NCD history.. Then again i've been looking at documents  this evening, and I am yet to find anything stating this.

Has anyone come up against a similar issue before?

Car_54

AFAIK NCD has no legal basis, and individual insurers can apply their own rules. 

Aviva want proof of NCD as policyholder, which you don't have. It really doesn't matter what LV say.

jimjames

MrMagic said:

The former LV policy covered three different family members residing at the same address, of which I am one. The LV insurance option was chosen after consulting LV last year because it offered the least expensive option for all family members.

The LV policy confirmed those on the policy would earn NCD in our own right as main drivers of different vehicles. We all owned and continue to own our vehicles. The policy was formally taken out by father, but with me stated individually as the main driver (and owner) of the single vehicle I use. I understood that any NCD earned would be in my own name, so I was satisfied with this arrangement.

Has anyone come up against a similar issue before?

We have an Admiral multi car policy and it works in exactly the way you describe here. Each vehicle has a different policy holder who has their own NCD so if LV aren't doing that then it would be rather strange. I can't suggest anything other than pointing out to them that other insurers do ensure that each vehicle has the correct policy holder earning NCD.

MrMagic

jimjames said:

MrMagic said:

The former LV policy covered three different family members residing at the same address, of which I am one. The LV insurance option was chosen after consulting LV last year because it offered the least expensive option for all family members.

The LV policy confirmed those on the policy would earn NCD in our own right as main drivers of different vehicles. We all owned and continue to own our vehicles. The policy was formally taken out by father, but with me stated individually as the main driver (and owner) of the single vehicle I use. I understood that any NCD earned would be in my own name, so I was satisfied with this arrangement.

Has anyone come up against a similar issue before?

We have an Admiral multi car policy and it works in exactly the way you describe here. Each vehicle has a different policy holder who has their own NCD so if LV aren't doing that then it would be rather strange. I can't suggest anything other than pointing out to them that other insurers do ensure that each vehicle has the correct policy holder earning NCD.

Thanks for your response. This is multicar policy, which is a common way of insuring, so I dread to think how many unsuspecting drivers similar requirement could potentially affect. Nothing really surprises me these days, so I can't say I'm shocked, but I am disappointed. I had assumed that for the purpose of NCDI am the policyholder, because the policy applies specifically to me and my vehicle and the NCD is defined as belonging to me as the main driver of that vehicle. I am referred to throughout the letters from LV, but if they will only accept "policyholder" as the person that policy was formally addressed to, then I am indeed totally stuffed. In the end I'll probably have to pay a fee to Aviva and leave them to find a company who will actually honour my discount. Surely there has to be one....

400ixl

Have you gone back to LV to request a proof of no claims specifically for you as the policy holder for your vehicle?

MrMagic

400ixl said:

Have you gone back to LV to request a proof of no claims specifically for you as the policy holder for your vehicle?

Thats the 'final plan of attack' for Monday morning. For me, the validity of NCD was so obvious that until a couple of days ago so I didn't think anything else would be needed. Unfortunately I only have until Thursday before the policy is cancelled, but if LV can provide something with my name at the top then I'll be asking Aviva for an extension.

HillStreetBlues

MrMagic said:

400ixl said:

Have you gone back to LV to request a proof of no claims specifically for you as the policy holder for your vehicle?

Thats the 'final plan of attack' for Monday morning. For me, the validity of NCD was so obvious that until a couple of days ago so I didn't think anything else would be needed. Unfortunately I only have until Thursday before the policy is cancelled, but if LV can provide something with my name at the top then I'll be asking Aviva for an extension.

Just make sure it's not Aviva that cancels insurance.

MrMagic

HillStreetBlues said:

MrMagic said:

400ixl said:

Have you gone back to LV to request a proof of no claims specifically for you as the policy holder for your vehicle?

Thats the 'final plan of attack' for Monday morning. For me, the validity of NCD was so obvious that until a couple of days ago so I didn't think anything else would be needed. Unfortunately I only have until Thursday before the policy is cancelled, but if LV can provide something with my name at the top then I'll be asking Aviva for an extension.

Just make sure it's not Aviva that cancels insurance.

I'll be sure not to. I can only guess what the consequences would be...

400ixl

Consequences are that you have to declare you have had insurance cancelled on every insurance quote you ever get in the future increasing the cost every time.

Its important that you cancel not them.

MrMagic

400ixl said:

Consequences are that you have to declare you have had insurance cancelled on every insurance quote you ever get in the future increasing the cost every time.

Its important that you cancel not them.

Yes that's what I expected and I will not let them damage me in that respect.

Out of interest here is the statement from Aviva I had originally read and have been following to prove my NCD.

"our proof of No claim discount is provided on the renewal invitation from your previous insurer, or by a proof of NCD letter. Your previous insurer may have posted or emailed this to you. If you can't find this, please ask your previous insurer to resend it to you. We cannot do this for you.

We can only accept a renewal invitation or proof of NCD letter, clearly displaying your NCD years on a headed letter sent to you by post or email. Your NCD must:

• only be used on one vehicle at a time, so it must not be in use on any other motor insurance policy
• be from a policy that expired within the last 24 months
• show discount earned on a private car or van and not a company car or van, classic car or motorcycle
• show your vehicle registration number
• show your postcode
• show your previous insurer's name
• be in English
• be issued by a UK or EU insurer, or an insurer from a country the DVLA includes in their license exchange scheme."

The quibble would be, I suppose, over the word "you" in the fifth line, in the context of the "headed letter being sent by post or email". Everything else is completely compliant. Its taken a few more email communications for them to elaborate to "proof of NCD in your own name as the policyholder". Prior to that it was only "We only accept NCD earned by you as a main driver of a vehicle on an insurance policy.". I can't say I'm happy about their clarity.

Naturally, having a multicar policy with my name specifically stated on the letter as a main driver demonstrates that I have the NCD claimed. Aviva claim not to care it seems, because the renewal letter was sent in the name of main driver of car X - 'Mr R', rather than the main driver of car Y - 'Mr M', despite the policy applying to both of us and referring to us having individual NCDs as main drivers of our own vehicles.

chrisw

I've always avoided multicar policies for this very reason and the fact that all the renewals become due on the same day.