14 day cooling off period

sammonp

Hi,

I took out car insurance with swiftcover on Sunday.
However I later found out that day, for the same sum, I can insure with Tesco, and get the "free" power washer.
I have checked the swiftcover T&C, and believe that I can cancel the insurance at anytime during the first 14 days, but swiftcover will deduct £25 as an admin fee, for setting up the policy.
Does anyone know if this is valid - or can I "ask/demand" the full amountto be refunded?

Cheers
sammonp

dunstonh

admin fees for changes and cancellation are allowed (FOS have allowed fees upto £50 according to their publications). The are also allowed to charge you for the number of days covered as well if they want.

Steve1981

dunstonh wrote: »

admin fees for changes and cancellation are allowed (FOS have allowed fees upto £50 according to their publications). The are also allowed to charge you for the number of days covered as well if they want.

if the policy is cancelled to inception (which was the day the other policy was set up) surely a full refund will be given. the FSA wording is "you have 14 days to cancel and recieve a full return of premium providing that no claims have been made, cancel outside of the 14 days and a cancellation fee of XX will apply"

I would argue that a fee should and would not apply

raskazz

A fee can definitely apply.

Swiftcover's policy states:

"Your right to cancel
If You are dissatisfied with the terms and conditions of Your Policy, You have the right to cancel the Policy from its original start date within 14 days from the date You receive Your documents in Your My Swift Space. Cancelling Your Policy in this way will mean that You will not have been covered by Us. We will return any premium paid provided no claims or accidents have occurred and reserve the right to charge a £25.00 administration fee."

I don't know what you are referring to when you say 'the FSA wording is', as there is no prescribed wording under FSA rules. The relevant rule is linked below (7.2.3, specifically). This rule makes it clear that the insurer can charge proportionately for time on cover and also add a reasonable administration fee, even if the insured is exercising his cooling-off rights.

http://fsahandbook.info/FSA/html/handbook/ICOBS/7/2

sammonp

A very happy update - SwiftCover refunded all my premium.

Cheers

Tightwad38

Hi, I have just tried to cancel my Swiftcover car insurance policy. I took it out on Monday 25th May 2009 and have rung today 28th May 2009 to cancel under the 14 day cooling off period and guess what, they are charging me the £25 admin fee. The insurance was due to commence on 8th June 2009 so no cover has been provided. (My current insurer Privilege have beaten Swiftcover's, I know I should have rung them first!)
I have cancelled the policy as I would now never ever have anything to do with them or AXA again and would rather forefeit the cash than give them any further business. I was told it is in the T&C's but would this not be classed as small print? It is not exactly clear written notice of my right to cancel. Any advice on going back at them to try and get the £25 refunded?
Cheers

dunstonh

guess what, they are charging me the £25 admin fee.

No problem with that. They publish it and they did have to do the work.

I was told it is in the T&C's but would this not be classed as small print?

What is the legal definition of small print?

It is not exactly clear written notice of my right to cancel.

It's their second item in their FAQs under : Do I get a refund if I cancel my car insurance?

If you cancel your car insurance within 14 days of setting up the policy, you will get a full refund less a £25.00 administration fee which we reserve the right to charge. However, if we cancel the policy in this way, it will be as if the policy had never been in force.

That print was the same size as the rest on that web page.