Norwich Union Pay as you drive car insurance withdrawn.

payless

Yes they would be allowed to cancel policies by giving notice, but as most have paid an initial payment , I would have thought a refund would be due, this would be another admin task + cancelling thousands of policies mid term would not be seen good in the press from one of the World's biggest insurers ... sure the regulators / DVLA won't be happy either

IF they contact me I will be asking for the year the continue OR a refund of initial payment

hansi

I really don't see a problem here. They're just stopping PAYD and putting everyone back on a normal policy just as soon as practically possible. This involves a lot of admin, as you say, but I don't think anyone will lose out as a result.

kimoffife

Well....they do seem a bit unsure/ could say disorganised.

I put my car through pre mot and was gonna cost too much so decided to bite the bullet and cgange . I rang up last week to check how it would work on Payd, as originally I think they was a penalty to move the satnav.
The guy was very friendly and just said, yes we're changing people over but it'll take a while...just give us your new details and carry on as is. I said my renewal was october and he replied that it would probably take until then for them to change.
Off I go...ring today to give new car details and the guy says that now all PAYD policies are being cancelled as at 30th August and new quotes being sent out!!!

I asked about what the other guy said and he , quite curtly I have to add, said no we'll be sending you a quote, no mention of special discounts or anything, and even said my new car "should" attrract an increase in premium but he would let me off!!!!:rolleyes:...considering he's changed the story and the new car's the same group, approx value as the old I think it was a bit ott......
He did offer to give me a quote, ...I declined , as I said to him ,I was hoping not to have that rigmarole until october.

I will await the new quote with interest....:rotfl:

Anyone found a payd anywhere else????

Oscar_The_Grouch

I've been looking on the FSA website to see if there is any mention of this change there, but nothing so far. In light of the fine to Hastings Insurance for failing to treat customers fairly over motor insurance (see other posts in hte forum), I will be very surprised if NU were to proceed with the Pay As You Drive Switch Off unless is was scrupulously fair to their policyholders.

NU were the subject of a very large fine by the FSA for failing to have systems and controls in place (which resulted in individuals being adversely affected on life products because NU incorrectly cancelled their policies). Somehow I don't think they will run the risk of another fine.

EDIT
Here's a link to the FSA Final Notice to NU in connection with their £1.26m fine:
http://www.fsa.gov.uk/pubs/final/Norwich_Union_Life.pdf

Then again, on rare occasions, I have been known to be wrong....

I look forward to seeing how this post develops over time.

Beccus.... Any comments from inside NU on this?

raskazz

I cannot forsee this developing in the same way as the Hastings case, because I believe that - correct me if I am wrong - NU are offering transfers to non-PAYD policies on terms far more favourable than the standard terms (i.e. much cheaper) to enable customers to see out the remainder of the policy year and accrue any potential extra year of NCD. One could also argue that they are not cancelling the 'policy' as such, but changing the method of billing. Hastings were (1) cancelling policies leaving policyholders to start earning extra NCD afresh, (2) offering customers rebroked policies at much higher rates and (3) giving customers a much, much shorter notice period.

I'm fairly certain that they will have fully considered all options in doing this (the failure to do so was the prime mover behind the Hastings fine), and I'm sure that there will not be the same mis-selling of products on the policy transfers.

Oscar_The_Grouch

Hi Raskazz.

I take your point, but the main issue is still about treating customers fairly and I'm not convinced that forcing a transfer to a new contract meets this requirement.

I'm not aware of the details, but I would assume that there will be some losers out of this. Surely the most TCF thing for NU to do would be to allow all current policies to reach their anniversary and then transfer to a new contract.

As I say, I'm not aware of the details so happy to be corrected. Where's Beccus when you need her??

[Deleted User]

Hi Oscar and all!
Apologies for not being around yesterday, I had a family bereavement this week and am visiting my parents.

Without being in the office I can't give exact details, however let me assure you, I work very very closely with the team that are dealing with the treating customers fairly issues and this is on their radar. I don't know what the outcome is or will be but we are making sure we do treat our customers fairly.

I'll be back in the office on monday and will research this and get back to you.
Becca

[Deleted User]

also
kimoffife i do apologise you were subject to 2 very different stories, if you want to email over your details I will see if we can get the calls listened too and some training sorted out etc.

email rebecca.sibley@norwich-union.co.uk
Becca

kimoffife

Thanks for that Becca, just been too busy but I may take you up on your offer.......


BUT.....I've just opened my post:.. two letters....not a happy customer, feeling confused, etc......ANY ADVICE??

letter 1/ amendment to policy for new car....policy runs until october 2008 as before.....no mention of anything else....

letter 2 / a standard looking letter confirming "we have cancelled your car insurance." and "we are sorry to lose you as a customer and hope you will ask us to quote again in the future".......
My first thought....you have not lost me as far as I know....but you may well now!!

I have just spoken to a very helpful call centre lady who has given me the quote details I should have received with this letter....no mention of this in the letter though.

i made a few points that I wished her to pass on, that the matter did not appear to be being handled as we had been led to believe ..(.I did stress that I did no wish to have a go at her but that it was not a reassuring way for the matter to be handled......as I had been led to believe it would be handled differently by the earlier letter.:)

The new quote is around the same as my quote had been last year for non PAYD ....
there is a large price difference between what Iaam paying per year on payd and this quote.....is this putting me in a comparable position as mentioned above?

I imagine there will be quite a number of calls to the centre....I feel sorry for the operators being made to deal with the backlash of the decision-makers' apparent confusion ...

Here we go again on the quotation merry-go-round......I really can't be faffed with it, but seem to have no choice????

if you've gotten this far, sorry...and thanks for any advice...
Confused of Fife:rolleyes:

[Deleted User]

hi kim
i'll get in touch with the people that are dealing with the ending and see what i can find out.

Becca