Insurance racketeering

[otherclive]

Prof
Most online sites do not let you pay unless you have ticked the T&C box.
It seems the insurer has given the OP some conflicting info regarding the refund amount so it might just be as simple as someone making an error. The OPs best approach is still to take it up with the insurer and then follow their complaints procedure to the Ombudsman if necessary. But if we are only talking the difference between £75 refund or £30 refund it may the OP may not think it worth it. Many of the insurers working via the comparison sites or directly with the customer show cancellation charges even in the 14 day cooling off period. The charges cover nugatory administration.

 

[Buckman]

OC one of the reasons why we prefer to stick with reputable insurance companies who have a decent track record and that we have used previously even if the price is higher. The insurer in question is a broker so someone is probably peeved about losing their commission.

 

[otherclive]

OC one of the reasons why we prefer to stick with reputable insurance companies who have a decent track record and that we have used previously even if the price is higher. The insurer in question is a broker so someone is probably peeved about losing their commission.

Likewise. I used them some years ago for an off road vehicle. The paper generated and clarity of communication left something to be desired.

 

[Buckman]

Well I don’t think insurance comes under CRA 2015?but the 2015 Insurance Act.

Good point so looked it up to refresh my memory. Looking at the CRA 2015 section 3 clause 2 (a) there is a possibility it may be covered there as it specifically mentions "sales contract" plus the fact it is distance selling. This is in addition to any Insurance Act.

 

[Tramp]

Yep, I think its nail on the head regarding commission. From early on in the discussion, it was pretty clear they were happy to be shot of me and grab their £75.00 "cancellation fee" commission. Zero risk for them and a steak dinner for (Disguised name of Insurer removed). He could even grab a few ipa s to wash it down at that rate.


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ANY further attempt to get around the Forum Rules will result in your instant ban from the site.

 

[otherclive]

Good point so looked it up to refresh my memory. Looking at the CRA 2015 section 3 clause 2 (a) there is a possibility it may be covered there as it specifically mentions "sales contract" plus the fact it is distance selling. This is in addition to any Insurance Act.

The Insurance Act also covers unfair contracts, and is specifically geared towards insurers trying to wobble out of a claim, where any failure on the part of the customer had no bearing whatsoever with the claim event; plus many other things too. The IA also directs the Customer to the Ombudsman as that is where disputes are resolved as opposed to the Small Claims Court or civil law for CRA 2015. CRA 2015 covers goods, digital offerings and services.

 

[Tramp]

Thankyou all. I will certainly go the FOS route. As someone stated this will cost insurance co. £500. If this is the case,
Compensation enough as far as I,m concerned.

 

[Buckman]

The Insurance Act also covers unfair contracts, and is specifically geared towards insurers trying to wobble out of a claim, where any failure on the part of the customer had no bearing whatsoever with the claim event; plus many other things too. The IA also directs the Customer to the Ombudsman as that is where disputes are resolved as opposed to the Small Claims Court or civil law for CRA 2015. CRA 2015 covers goods, digital offerings and services.

CRA 2015 covers Sales Contracts as per section 2(a). Offering to insure is also a service. There a re several bits of legislation that they could be running foul of and to over ride legislation is a criminal offence and not civil.

 

[otherclive]

CRA 2015 covers Sales Contracts as per section 2(a). Offering to insure is also a service. There a re several bits of legislation that they could be running foul of and to over ride legislation is a criminal offence and not civil.

Thats interesting could you give me a link that specifically defines insurance asa Service under CRA 2015, as I have never been able to find one. Perhaps your Which contacts have one.

This may be relevant:

Supply of services
Insurance is not expressly excluded under the Act, but the Act applies only to the extent that the service provided is not subject to separate existing legislation that provides for more extensive consumer rights than under the Act. As a result, the impact of the provisions on the supply of insurance services is likely to be limited given the extensive rights already set out in financial services legislation and the Financial Conduct Authority Rules.

It is unclear how the Courts will interpret how the various pieces of legislation and rules interplay with each other. For example, the Insurance Conduct of Business Rules require claims to be paid “promptly”, as opposed to within a reasonable time as is required for the performance of services (e.g. claims payments) under the Act. It may be that “promptly” is considered to be a higher standard than “within a reasonable time”, however, the remedy under the Act is greater than that under ICOBS so which provides the greater consumer rights? This question might be resolved by the Enterprise Bill, if passed, which will amend the Insurance Act 2015 to include an implied term in all insurance policies that claims will be paid within a reasonable time and to provide for damages to payable where claims are paid outside of the reasonable time.

 

[Gafferbill]

........the quote for insurance renewal on our 1.4 ltr. diesel Ford from a well know insurer wanted another £20 over last years premium.
Car insurers in general must have had a bumper year due to a lot less car use and quieter roads so no justification for a price rise over last years premium.
Change of insurer called for.......so have insured with our bank and saved £40 over last years premium and will receive a £50 Sainsbury's voucher!

IMO insurance is always .....Buyer beware.....and read all the small print very carefully.

 

[Tramp]

I think you got of light. My car was about £700 last year. renewal letter was £1200.00 I even phoned them and said that i checked online and it was in the 600s. they advised to take insurance out online. Took my business elsewhere.
Sooner our so called ligislators bring these cowboys to task.....

 

[otherclive]

I think you got of light. My car was about £700 last year. renewal letter was £1200.00 I even phoned them and said that i checked online and it was in the 600s. they advised to take insurance out online. Took my business elsewhere.
Sooner our so called ligislators bring these cowboys to task.....

Ah the joys of being young, and/or having powerful motor. I pay less than £300 for the Subaru XT with my wife and daughter insured too. But tax is a whopping £350 a year, so not climate friendly, and we don't discuss fuel "economy", although I have seen 43mpg once on a trip to Swansea steady cruising on the M4.

 

[otherclive]

........the quote for insurance renewal on our 1.4 ltr. diesel Ford from a well know insurer wanted another £20 over last years premium.
Car insurers in general must have had a bumper year due to a lot less car use and quieter roads so no justification for a price rise over last years premium.
Change of insurer called for.......so have insured with our bank and saved £40 over last years premium and will receive a £50 Sainsbury's voucher!

IMO insurance is always .....Buyer beware.....and read all the small print very carefully.

We are with LV+ and both cars had a slight reduction in renewal premiums this year.

 

[Tramp]

Fool me, decided to think of planet and go electric. My electric rates are going up, and as above, my insurance has gone through the roof.

 

[Buckman]

Thats interesting could you give me a link that specifically defines insurance asa Service under CRA 2015, as I have never been able to find one. Perhaps your Which contacts have one.

This may be relevant:

Supply of services
Insurance is not expressly excluded under the Act, but the Act applies only to the extent that the service provided is not subject to separate existing legislation that provides for more extensive consumer rights than under the Act. As a result, the impact of the provisions on the supply of insurance services is likely to be limited given the extensive rights already set out in financial services legislation and the Financial Conduct Authority Rules.

It is unclear how the Courts will interpret how the various pieces of legislation and rules interplay with each other. For example, the Insurance Conduct of Business Rules require claims to be paid “promptly”, as opposed to within a reasonable time as is required for the performance of services (e.g. claims payments) under the Act. It may be that “promptly” is considered to be a higher standard than “within a reasonable time”, however, the remedy under the Act is greater than that under ICOBS so which provides the greater consumer rights? This question might be resolved by the Enterprise Bill, if passed, which will amend the Insurance Act 2015 to include an implied term in all insurance policies that claims will be paid within a reasonable time and to provide for damages to payable where claims are paid outside of the reasonable time.

I may have mentioned Which Legal Services regarding another matter, but certainly not in recent posts referring to CRA 2015. Buying anything could be regarded as a service. Buying insurance is a sales contract.
BTW if you have an insurance policy and it has a CPA on your card for the renewal and they take the money before the policy commences, if you cancel would you have to pay an admin fee as the renewal is a brand new contract and T&Cs may have changed.
No harm in he OP contact Which Legal Services and asking the question.

 

[otherclive]

Actually you have not started. Do you have a deadlock letter from them? You need to send a letter or email with your complaint giving them for instance 10 days to reply. Keep the letter very brief and to the point. Mention at the end that if they do not reply the issue will be escalated to the FOS. For FOS will cost them in excess of £500 which is a lot more than the £75. Importantly request an answer in writing as you need a paper trail.
If they reply move to the next step. If they do not reply within 14 days and you have proof of delivery only at that stage should you escalate the complaint.
I got advice from Which Legal Services many years ago. CAB are generally a waste of time and space.

Your post # 14 mentions Which that’s where I got my info from.

 

[Raywood]

I agree with Buckman. You should have a 14 day cooling off period when you can get your money back, so write an official complaint to the company.

 

[Buckman]

Your post # 14 mentions Which that’s where I got my info from.

I think you may have missed that many years ago we did not have CRA 2015 and the reference was regarding getting back an admin fee. Sorry for confusion. LOL!
I am not disagreeing with you just hopefully offering what could be helpful advice.

 

[Tramp]

Well, issue resolved. I have no doubt that sending the link to this thread to them did the trick. Full refund. Thankyou all for assisting me.

 

[otherclive]

Well, issue resolved. I have no doubt that sending the link to this thread to them did the trick. Full refund. Thankyou all for assisting me.

Great stuff. 👍👍

 

[Beachball]

Insurance renewal Mitsubishi 1.1 unleaded had gone up quite a bit look around got a better quote including breakdown cover she very happy it worth looking around ..

 

[Dustydog]

In Law an Insurer must give you a 14 day cooling off period. They are allowed to charge a “small “admin fee if you withdraw as per their T &C. Sadly imo you are up the creek without a paddle. The FSO , Ombudsman , will have to deal with your claim in accordance with your contract. Unfair or not you signed up to it. Bite the bullet and put it down to experience. Cheapest is rarely the best😉😉

 

[Hutch]

In Law an Insurer must give you a 14 day cooling off period. They are allowed to charge a “small “admin fee if you withdraw as per their T &C. Sadly imo you are up the creek without a paddle. The FSO , Ombudsman , will have to deal with your claim in accordance with your contract. Unfair or not you signed up to it. Bite the bullet and put it down to experience. Cheapest is rarely the best😉😉

Your a bit late, DD , Tramp, has had a full refund. Are you hiding in your shed again. 🍺🍺🍺

 

[Dustydog]

😁😁😁😁😁😁🤬🤬🤬🤬🤬🤬

 

[Sam Vimes]

Well, issue resolved. I have no doubt that sending the link to this thread to them did the trick. Full refund. Thankyou all for assisting me.

Good to hear you got it resolved.

Just for interest I had my car insurance renewal come through this morning from LV. These are the T&Cs regarding cancellation. Somewhat tortuous I think.

Within 14 days of receiving your documents or the start date of your policy, whichever is the later - we'll refund any money you've paid less a charge for the cover you've had and a cancellation fee of £40.00 – a refund will still be paid if you’ve made a claim. If you cancel before your policy starts no charges will be made. After 14 days, we'll refund any money you've paid less a charge of any cover you've had and a cancellation charge of £40.00 – a refund will not be paid if you've made a claim.