Help! insurers seem to be trying to pull a fast one

pixelchick10

Hi --- my partner had an accident, where a car hit his motorbike on a roundabout (he was on the roundabout, she was joining it and didn't see him). The bike's been written off by the insurers. Now the other driver fully admits responsibility (when the accident happened, and now, one month later as I spoke to her on the phone just a couple of days ago). But the insurers are still trying to get out of paying him back for the full value of the bike -- they say he has to pay the excess, and so far haven't even bothered to try to reclaim all the money back from the 3rd party. If he is the injured party, and its undisputed that the accident wasn't his fault, is this right? I had an involved conversation with one of the operators in the claims dept, and she let slip that sometimes they 'waive' this 'requirement' for the excess to be paid. So then I said she had to apply this waiver in my partner's case and pursue the third party, which she verbally agreed to do that afternoon. I got her name, so I've written a letter to her, detailing our conversation, once again giving her the mobile number and name of the other driver, and asking for the full amount of the bike's market value to be paid. I'll send it recorded, so they can't claim they haven't got it. What else can I do/should I be doing to put the screws on further if needs be? It seems to me these insurers take your money very happily and then try to wriggle out of paying what you're due.

Quentin

They aren't pulling a fast one. If you make a claim on your own insurance you have to pay the excess which you agreed to when taking out the insurance.

You now need to pursue the third party to reclaim this (as well as any other costs you have had which aren't covered by your insurance).

If you have legal expense insurance included with your insurance you can use this to make this claim.

Another way of doing this might be to engage a no win no fee company, and let them claim everything for you direct from the third party, without you actually claiming from your own insurers, as you seem to have a cut and dried case of the the third party admitting liability.

V_tricky

When your partner took out his insurance he was happy I'm sure to get a reduced annual premium for having an excess on the policy.

He agreed to pay the first X amount of any claim.

Whilst his insurer can choose to waive the excess as a gesture of goodwill, they are in no way obliged to. If he didn't want to pay his excess, he should have asked for it to be reduced (and been prepared to pay more for in his premium).

It isn't something that you can demand, because you simply aren't entitled to it. You can ASK them (hopefully NICELY) and they MAY choose to waive it, particularly if they have it in writing already from the third party insurers that liability is accepted.

The excess applies regardless of liability, and is normally reimbursed by the responsible party's insurer.

As for 'bothering' to claim back all the money - until they've actually paid something out, there is nothing to claim back! Once his total loss has been dealt with, the file with then more than likely move to specialist recovery handlers, whereas at the moment it is probably with a specialist total loss unit, or a department which just deals with policyholder own damage claims.

Their priority is to get your partner back on the road as quickly as possible - the recovery of their losses come second (and can by definition only come AFTER they've actually incurred a loss anyway).

If they put all their efforts into writing to the third party insurers and tracking all the relevant details to cover their own backs instead of getting the damaged vehicle fixed, or PAV chq issued regardless of liability, then I'm sure that there would be uproar!

dunstonh

they say he has to pay the excess, and so far haven't even bothered to try to reclaim all the money back from the 3rd party.

1 - that is what the excess is for. Its always been like this and no-one is pulling a fast one.

2 - The insurer is not required to claim the excess back. That is the job of your legal team and why you take legal expenses cover on a policy; to claim back out of pocket expenses including excess.

It seems to me these insurers take your money very happily and then try to wriggle out of paying what you're due.

They have done nothing of the sort.

pixelchick10

Thanks all for your comments and for clarifying the situation

"The excess applies regardless of liability, and is normally reimbursed by the responsible party's insurer."

Yes vtricky - I didn't realise that we would have to lose the excess in the first place and then go about claiming it back. Thanks.

'The insurer is required to claim the excess back. That is the job of your legal team and why you take legal expenses cover on a policy; to claim back out of pocket expenses including excess.'

Thanks dunstonh - I will try the legal team again - although I've already been put through to them twice and they said they weren't the right people to talk to? As you say, he has legal expenses cover, so if the insurer won't make an exception and waive the no claims then that has to be the route to go down.

dunstonh

Sorry, I made a typo in there missing out a word. The insurer is not required to claim it back. That is done through the legal expenses team. He lists it with his other out of pockets expenses and he should get it back quite quickly (about a month) if the claim is reasonable and the liability accepted.

pixelchick10

thanks dunstonh - so does the insurer deal with the legal expenses team on our behalf, or should I talk to them?

V_tricky

It sounds though like his insurers have agreed to waive his excess though, as a gesture of goodwill, but if they haven't...

Although the legal expenses handlers should be able to claim the excess back relatively quickly, in reality, the very quickest way of getting it back would be to fax or email (or even post) a copy of a letter from your insurer confirming that the deduction was made (this might be on the letter sent with the total loss cheque for example) to the responsible party's insurer.

Make sure you put their claim number on, a short request for the amount to be refunded, and confirmation of the payee name & address to send it to.

If there are any other losses that the legal expenses people are claiming back (loss of earnings, leathers, gloves, helmet, personal injury etc) then you MUST put on that letter you send that you will accept the excess reimbursement as an INTERIM payment only, otherwise you could put yourself in a position where you accept the excess in full & final settlement of ALL claims.

pixelchick10

thanks vtricky for that helpful advice