Misrepresentation

Aretnap

Virgoan65 said:

My policy was cancelled with immediate effect so I have had to get alternative cover. If they reinstated my policy I would have two policies!

You might not want then actually to reinstate it, but you do want then to acknowledge that it should now have been cancelled, remove your details from shared databases recording the cancellation, and provide you with a letter saying that your policy was cancelled incorrectly which you can show to other insurers if necessary.

That's what the Financial Ombudsman will generally order in this situation if they find that your policy was wrongly cancelled. The goal is not to have two policies, but not to have to declare the fact that you have had insurance cancelled.

(In the meantime, you did declare the cancellation to the new insurer, didn't you?).

Virgoan65

Aretnap said:

Virgoan65 said:

My policy was cancelled with immediate effect so I have had to get alternative cover. If they reinstated my policy I would have two policies!

You might not want then actually to reinstate it, but you do want then to acknowledge that it should now have been cancelled, remove your details from shared databases recording the cancellation, and provide you with a letter saying that your policy was cancelled incorrectly which you can show to other insurers if necessary.

That's what the Financial Ombudsman will generally order in this situation if they find that your policy was wrongly cancelled. The goal is not to have two policies, but not to have to declare the fact that you have had insurance cancelled.

(In the meantime, you did declare the cancellation to the new insurer, didn't you?).

Thanks for that Aretnap, I did inform the new insurer about the cancellation.

Aretnap

While the details are rather different, there's an ombudsman case here which may be of some help.

https://www.financial-ombudsman.org.uk/decision/DRN8391993.pdf

A man played in a band, definitely not a famous or successful one. They played irregularly in local venues, sometimes for free, but sometimes for travelling expenses or a small fee. He had musical equipment stolen, and the insurance company declined his claim on various grounds, one of which was that the equipment was being used for business purposes. He argued that he wasn't running a business, and the band was "just a hobby, for which he was occasionally paid." The Ombudsman agreed with him, and upheld his complaint. 

Your case is rather different, however I'd suggest that if there's a difference between a hobby that occasionally earns you a small amount of money and a business, there's also a difference between a hobby and an occupation. Good luck.

DullGreyGuy

Just for completeness, ombudsman decisions dont set precedent so just because one decision went one way they arent bound to make the same decision each time they are presented with a similar case. That said, they tend to be fairly consistent but just a heads up that you can't directly reference that case and say they should therefore come to the same conclusion as you could do were it a court of law instead.

Virgoan65

DullGreyGuy said:

Just for completeness, ombudsman decisions dont set precedent so just because one decision went one way they arent bound to make the same decision each time they are presented with a similar case. That said, they tend to be fairly consistent but just a heads up that you can't directly reference that case and say they should therefore come to the same conclusion as you could do were it a court of law instead.

Thanks for that DullGreyGuy. Another problem has arisen! It now seems my NCD has gone down from 11+ to 3...I'd better get onto my new insurer sharpish.

On Friday 14 Feb. I contacted my insurer to let them know I had been in a non-fault accident (insurer declared this). They booked me in with Enterprise Hire Van which I collected on Monday 17 Feb. On Tuesday 18 Feb. the insurer text me to say they were cancelling the policy at 23.59pm that day (careless misrepresentation). Enterprise collected their van on the Tuesday 18 Feb.

I seem to be in a right mess, I mentioned the cancelled policy on my application to the new insurer. But I recorded the NCD incorrectly (I wasn't aware that I'd lost some). I also declared that I hadn't made a claim...since my previous insurer had cancelled my policy (and as far as I was aware was not going to be acting on my behalf). I'm surmising the NCD have been lowered because of the van hire charge (that's if they've paid Enterprise).

From my previous insurer:

CLAIMS REPORTED:

Claim Type - Accident, Driver - Mr S....d, Vehicle Reg - D.....U, Liability - Non-Fault, Incurred - £0.00, Claim Status - Open, Incident Date -

14/02/2025

I have made a third party claim on the other party's insurance, but couldn't understand why the claims adviser had said that Enterprise were dealing with it. I told her that they weren't it was on me.

Any advice is greatly appreciated, this is my first dealings with insurance companies.

DullGreyGuy

Dont surmise, ask them. 

Do you have the paperwork for the hire van? Wouldn't be too surprised if it wasnt a credit hire vehicle as many companies sell pass their customers details to the likes of Enterprise in non-fault accidents. 

Virgoan65

DullGreyGuy said:

Dont surmise, ask them. 

Do you have the paperwork for the hire van? Wouldn't be too surprised if it wasnt a credit hire vehicle as many companies sell pass their customers details to the likes of Enterprise in non-fault accidents. 

When I contacted the insurer last Friday they set the van hire up there and then. I went to the van hire depot on Monday, and all details were filed on a tablet with e-signatures. I suppose as this claim develops I'll be able to claim the one day van hire charge back. 

Virgoan65

At this stage I feel my current insurer will need to know about the non-fault claim (If they get back to me!) and the reduced NCD...that should push my premium up a few hundred quid!

DullGreyGuy

I'd explain to them it's a non-fault claim but the claim is still open and so impacting your NCD which you were unaware would be the case. Most decent insurance staff know that the average person doesn't understand much about insurance, just as they won't know much about reinsurance (which is a big part of my career - its considered a dark art even by those in insurance). 

That doesn't meant they wont charge an admin fee or such to change it but they shouldn't give you an extrodinarly hard time about it either. While speaking to them ask what will happen when (if) the claim is resolved non-fault and the NCD is reinstated. 

Virgoan65

DullGreyGuy said:

I'd explain to them it's a non-fault claim but the claim is still open and so impacting your NCD which you were unaware would be the case. Most decent insurance staff know that the average person doesn't understand much about insurance, just as they won't know much about reinsurance (which is a big part of my career - its considered a dark art even by those in insurance). 

That doesn't meant they wont charge an admin fee or such to change it but they shouldn't give you an extrodinarly hard time about it either. While speaking to them ask what will happen when (if) the claim is resolved non-fault and the NCD is reinstated. 

Your advice is really helpful DullGreyGuy, I feel much more confident tackling this.