AA Car insurance cancelled - due to missing their NCD proof request.

devondiver

Ref: https://www.theaa.com/car-insurance/
Car Insurance Policy Booklet (pdf) page 41:

"The Insurer or AAISL may cancel this insurance if there are valid grounds to do so, these are:
7. Failure to supply requested validation documentation (for example, proof of address, V5, proof of purchase, proof of No Claims Discount, Driving Licence of any named driver, Security certificate etc.)."

I think AA have made a distinction in my case because it was not a case of "Failure to supply" since they accept that I 'supplied' as soon as I became aware of the requirement - and that their reminders remained unopened as they were not received. Hence the return of unused premium and waiver of cancellation fee.

So, since I have had it 'from the horses mouth' I must accept that they have treated this as a case of 'customer cancellation'.

Further, I strongly suspect that, if they were to treat such a case differently - or to renege - and it goes to FOS for adjudication it would be found that, under these circumstances, they would have behaved unreasonably.

TSx

Whilst I would probably not be comfortable not disclosing this to a new insurer, I think on the balance it's unlikely it will cause you any problems, with a couple of exceptions

1) If they register it on the relevant databases as being cancelled by the Insurer it's likely new insurers will flag it, either when taking out the policy or at claim stage. You'll then need to supply your proof from the AA that they don't believe it needs declaring
2) The AA cannot speak for other Insurers. You are asked a question (have you ever had a policy cancelled) and need to answer this accurately. It's quite clear that you have not cancelled it, there is no technicality around this. To cancel a policy you need to take an affirmative step, and that hasn't been done. Therefore, the Insurer has cancelled it.
3) Most insurers will not care ultimately, given the circumstances, but it may lead to extra admin when taking out policies, or making a claim.
4) An Insurer would be in their rights to decline a claim, or cancel a policy if they found out about this and wouldn't have given you cover if they'd known all the facts. The FOS would likely support the Insurer in that situation
5) In the unlikely event that did happen, I would expect an FOS complaint against the AA to be upheld for giving you advice that has led you to suffer a loss, and them to award compensation accordingly.

The best option will be to get the cancellation overturned - but from prior experience if the Insurer has records saying they sent you email and letters, then it's unlikely the FOS will accept you saying you didn't receive them, unless the AA had other similar complaints at the same time. If you can get BT to confirm all emails received from the AA during this time that would help but I'd be very surprised if they can (this is evidence you could only generally get with a corporate email system)

devondiver

TSx said:

The best option will be to get the cancellation overturned 

This has been my objective at the outset - but I was quickly told, by AA, that this was an impossibility, - and by various others that I was on a losing wicket. I remain hopeful however.

Thank you for your succinct and seemingly informed impartial analysis.

TSx

I should say that they may not be able to reinstate it for various reasons but a new policy from them with the cancellation removed from any databases is effectively the same thing

DullGreyGuy

devondiver said:

Ref: https://www.theaa.com/car-insurance/
Car Insurance Policy Booklet (pdf) page 41:

"The Insurer or AAISL may cancel this insurance if there are valid grounds to do so, these are:
7. Failure to supply requested validation documentation (for example, proof of address, V5, proof of purchase, proof of No Claims Discount, Driving Licence of any named driver, Security certificate etc.)."

I think AA have made a distinction in my case because it was not a case of "Failure to supply" since they accept that I 'supplied' as soon as I became aware of the requirement - and that their reminders remained unopened as they were not received. Hence the return of unused premium and waiver of cancellation fee.

Return of unused premium is normal in a cancellation, it is only if a policy is voided that they can consider retaining the premiums. 

Cancellation - policy existed, it simply stopped on a set date
Void - treated as if the policy never existed

Insurers can void a policy for things like intentional false information given when doing quotes (rather than misunderstanding the Q) but rarely do so if found in the general administration of the policy. They are much more likely to do so if it's found at claim stage instead. Even then premiums are often returned unless we are talking about a third party claim on Motor when the insurer will retain them as they are still the RTA insurer in most cases so will have to pay the third party and then recover the money from their former customer... then they offset the retained premiums from the cost of the claim. 

devondiver

Progress update:

Somewhat surprised to receive as quickly as this morning, by email, a concluding report of the AA investigation of my complaint. As described on here and, as expected, the investigation found that procedures had been followed correctly and that the cancellation was correctly processed - so my complaint was not upheld. 

The complaint handler did refer to our long conversation on Friday (28th March) but did not mention that I claim not to have received any of their reminder messages, or that he was able to confirm that they were unopened. (As an aside, I am still awaiting delivery of their cancellation notice allegedly posted to me on 18th March.)

He did, however, confirm in writing that the cancellation does not need to be declared to future insurers.

So what next? Do I, as suggested by TSx, re-insure with AA - paying over the odds in order to achieve some sort of 'continuation of cover' - whilst also confirming that I do not appear on any 'cancellation database'? Or do I just go with the cheapest/best on line quote I can find and follow the AA advice not to mention the cancellation?

I do, regardless, intend now to follow through with a referral to the FOS as I believe my case highlights a serious failing in accepted procedures. Procedural failings which allow insurers to unilaterally cancel the insurance of legitimate and innocent policyholders purely on the basis of flaws in communication - without there being procedures in place to, at least attempt to, ensure that the policyholder has been made aware of the insurer's requirements and the consequences of failure to comply - clearly laid down in an unequivocal and unambiguous manner.

Further, if the present instance is anything to go by, there is clearly a case for removing any element of doubt about the question of whether or not such cancellations actually are defined as "cancellation" for the purpose of declaration at the time of applying for insurance. Regardless of what the AA are happy to quote in my own case, this is obviously a grey area which needs to be officially clarified as it has potentially serious consequences if left to arbitrary interpretation.

devondiver

More news! The expected cancellation letter from AA Insurance dated 18th March has finally reached my doormat - on April 1st!

Also delivered at the same time was the expected 'complaint conclusion' letter dated 22nd March.

So these two important letters have apparently taken 14 and 10 days respectively to reach me, to add to their 4th March letter which took 17 days to arrive.

Surely important letters like these, which can have serious consequences, should be sent first class at the very least, if not by recorded delivery or similar? Or have we reached the point where profits and price-cutting far outweigh considerations of consumer protection and common sense?

Happy All Fools Day. Perhaps the missing emails will finally hit my inbox today as well!

Please feel free to comment on my yesterday's missive. I am still undecided and awaiting input.

DullGreyGuy

devondiver said:

More news! The expected cancellation letter from AA Insurance dated 18th March has finally reached my doormat - on April 1st!

Also delivered at the same time was the expected 'complaint conclusion' letter dated 22nd March.

So these two important letters have apparently taken 14 and 10 days respectively to reach me, to add to their 4th March letter which took 17 days to arrive.

Surely important letters like these, which can have serious consequences, should be sent first class at the very least, if not by recorded delivery or similar? Or have we reached the point where profits and price-cutting far outweigh considerations of consumer protection and common sense?

Happy All Fools Day. Perhaps the missing emails will finally hit my inbox today as well!

Please feel free to comment on my yesterday's missive. I am still undecided and awaiting input.

It's better that they are sent via the mechanism that the insured has requested they be communicated in. Sending me a first class or signed for letter does me no good at all if I am out the country for a month. Signed for indeed would be worse as RM would have returned it after the failed deliveries. 

Can't say for where you are but right now we get stuff through our door by RM about once every 1-2 weeks but each delivery is almost always 2-3 letters... seems very unlikely that all post sent to us is timed such to arrive in clusters. Not overly bothered because almost anything important I have sent by email. 

Complaint responses are not particularly time sensitive; you have 6 months to escalate a complaint to the Ombudsman so the difference between 1st and 2nd (or equivalent non-RM services) of a day is irrelevant and will be nothing compared to the months before the ombudsman actually picks up the case. 

devondiver

Update:

So today I started a new on-line policy with AA - but have yet to have 'the conversation' re. cancellation etc.

Watch this space.