Claims and Underwriting Exchange (CUE) database. Can they change a notification?

Tommybach

This is a case regarding a car insurance new policy application. Not mentioning any names or makes to avoid litigation for misrepresentation, I am in the final stage of purchasing my daughter's car at the trade price she was offered against a new model. She took exceptional care of the car for 3 years and kept it in immaculate condition. The car dealers, when she first purchased the car suggested a form of 'vanity insurance' where she pays a nominal fee for 3 years cover in case of very minor scratches chips or dings to any part of the bodywork. This policy was set up along side the Dealers Own comprehensive car insurance policy (that is the dealers run their own insurance providers). The 'vanity' cover had an unlimited call out policy. Unfortunately on 2 occasions for very minor scratches she called them out for repair on her driveway. On a 3rd occasion she noticed a minor scratch on an alloy wheel so she rang the insurance company to ask if it was covered on the 'vanity' policy. They said no it would have to be repaired using the general car insurance. Not wishing to affect her accrued NCB she decided not to proceed with a claim.

So back to my side, in arranging insurance cover via a well known comparison site I applied for a new comprehensive policy on my daughter's 3 year old car with 3 additional named drivers all with clean licenses and no claims within 5 years. Accepting the fee and declarations completed and paid for the cover in good time for the handover. A few days later, 40 hours before the due handover/start date, I receive a text message to contact the insurance company urgently. In doing so they say that their company in association with the Claims and Underwriting Exchange (CUE) database has established there was a claim not declared and that my insurance will be cancelled and the policy fully refunded!  Reeling in shock as other policies I had previously considered were considerably more expensive I asked what was the undeclared claim, -- it was my daughter's enquiry regarding the scratch to alloy wheel to the dealer's insurance team. I had to make an instant decision and had to take my daughter's name off the additional drivers list. My daughter was on the other line whilst I was speaking to my new policy provider. Obviously she was very upset but agreed that in the urgent situation I had no option. The official from my insurance company did not have English as her first language. Repeatedly said the notification is regarded as a claim. The situation was quite stressful.

I am asking if anyone else has come across a similar situation and and what was their outcome?

Is the Claims and Underwriting Exchange (CUE) database people approachable.

BarelySentientAI

Sounds like she made and then withdrew a claim.

DullGreyGuy

Tommybach said:
I applied for a new comprehensive policy on my daughter's 3 year old car with 3 additional named drivers all with clean licenses and no claims within 5 years. 

You were not asked if the drivers have made any claims but were asked if they had sustained any losses irrespective of if claimed for or not and irrespective of blame. In principle all 3 claims should be declared but you were able to get away with "forgetting" about the other two because these "vanity" policies dont typically report to CUE whereas their Motor insurer will have reported the fact she admitted damaging the car 

CUE won't take instruction from you only the subscribing insurers and it is currently recorded correctly that she sustained damage even if the claim didnt progress. 

jimbo6977

DullGreyGuy said:

Tommybach said:
I applied for a new comprehensive policy on my daughter's 3 year old car with 3 additional named drivers all with clean licenses and no claims within 5 years. 

You were not asked if the drivers have made any claims but were asked if they had sustained any losses irrespective of if claimed for or not and irrespective of blame. In principle all 3 claims should be declared but you were able to get away with "forgetting" about the other two because these "vanity" policies dont typically report to CUE whereas their Motor insurer will have reported the fact she admitted damaging the car 

CUE won't take instruction from you only the subscribing insurers and it is currently recorded correctly that she sustained damage even if the claim didnt progress. 

So where do you (and CUE) draw the line between "damage" and "wear and tear"? Every car had a few stone chips, each of which could result in a small "loss" to the value of the car. Are we meant to declare all of them? Are we supposed to declare paint faded by sunlight even though no motor policy would cover it? 

DullGreyGuy

jimbo6977 said:

DullGreyGuy said:

Tommybach said:
I applied for a new comprehensive policy on my daughter's 3 year old car with 3 additional named drivers all with clean licenses and no claims within 5 years. 

You were not asked if the drivers have made any claims but were asked if they had sustained any losses irrespective of if claimed for or not and irrespective of blame. In principle all 3 claims should be declared but you were able to get away with "forgetting" about the other two because these "vanity" policies dont typically report to CUE whereas their Motor insurer will have reported the fact she admitted damaging the car 

CUE won't take instruction from you only the subscribing insurers and it is currently recorded correctly that she sustained damage even if the claim didnt progress. 

So where do you (and CUE) draw the line between "damage" and "wear and tear"? Every car had a few stone chips, each of which could result in a small "loss" to the value of the car. Are we meant to declare all of them? Are we supposed to declare paint faded by sunlight even though no motor policy would cover it? 

You must answer all questions honestly and completely, the question asked on a popular aggregator is:

Have any drivers had any motor accidents or claims in the last 5 years?

This includes any incidents, losses, thefts or claims involving a vehicle regardless of fault or whether you claimed or not.

It's up to you to determine if you feel stone chips or faded paint meets the definition of the question or not. Failure to declare something that should have been declared can result in your policy being voided and you being personally liable for any incident you have been involved in. Compensation due to others arising from a personal injury cannot be avoided by bankruptcy. 

Back in my claims days we did have one customer repaying a 6 figure sum with a charge on their home for a false declaration when they took their insurance out which was discovered after they hit a pedestrian. 

Annemos

Different case. But here is how mine worked. I found out the CUE entry was wrong on a home damage claim.

I contacted the Insurance Company who made the error. They wrote back, that they were correcting it and it would take about 5 working days. (They also wrote the e-mail in such a manner, that I could present it to any other insurer, too, if I needed extra proof.) 

Now 2 months later I have submitted another CUE request, to investigate the record again. (To check if has indeed been corrected.) This is taking the usual month to be processed. 

So yes, any actual CUE changes can only be done by the Insurance Company that made the initial entry.