Insurance Broker - mis sold?

[robert_harper_2000]

My brother paid a broker to find a good qoute. He paid £637ish in december, I saw the qoute thought I could do better, I used confused.com and got a qoute £242 cheaper in about five minutes.

I was fairly annoyed and checked his details, the broker has in small print about cancellations that commissions aren't refunded and a charge of £5 will be admistered. This I think will take a bite out of my saving.

When I looked through his details the broker had ( who he has been dealing with for a while ). The broker had failed to check
a. His mileage 6,000 instead of the more accurate 3,000
b. Est. value at £13,000 well it's a 13 year old car! nearer £6,500
c. Use. put down as commuting which he doesn't do it's only used for social as my other brother drives us down to work.
d. Excess put down as nil well anyone knows up the excess reduce the cost.

I think this policy was mis-sold. However I don't know what rights I have etc.

He is registered with the FSA

Thanks

[Loula]

Hi Robert!

Did your brother fill in a proposal form? If not, how did the broker have the details?

I am sure you have a claim against the broker but we need to check the details carefully.

Thanks

LOULA

[robert_harper_2000]

My brother has been dealing with the broker for a while. The details were his previous details and were not updated.

Thanks

[Loula]

Hi Robert,

Your brother does have to inform the broker of all changes so that the Insurance company can make renewal on the correct terms.

That being said, the broker should have sent a renewal questionnaire or proposal form to be completed. This is an FSA requirement.

Scenario 1

If the broker DID NOT send out the questionnaire, fact finder or proposal at renewal.

1. Send a letter to the broker stating the discrepancies and ask them to obtain a QUOTATION only from the insurance company for the correct details.

2. Contact the Insurer direct and ask if they would take the policy on a direct basis, ie. no broker or intermediary involved.

3. Ask for the same quote as the broker is asking for to compare.

4. If the answer to 3 is YES and the quotes are the same then I suggest he writes to the broker and terminates his contract stating that they have not been acting in his best interests and that the failure to issue the renewal questionnaire is against FSA ruling. Also, he will pay them no further commissions or fees or costs.

5. Contact the FSA and advise them of this breach of regulations. It probably won't go any further but we can cross that bridge at another date!

Scenario 2

If the Broker DID send out the questionnaire, fact finder or proposal at renewal.

1. Ask the broker for a copy.

2. Check what your brother disclosed.

3. If anything has been missed by the brokers when informing the Insurers then follow steps 1-4 above.

4. If nothing has been missed by the brokers, then I am afraid you are at a loss to claim against them.

Srry that the final point above is so negative. We all have the onus on us to check what is happening with our insurance policies. Brokers are meant to aid the process by drawing attention to the things which should be check annually.

Let me know which scenario befits your brothers case

You know where I am

LOULA

[robert_harper_2000]

Just can't believe how helpful you lot are. It's ashame how unhelpful my brother is! lol I asked him and he has no idea what he did etc. I called the broker and was informed I ( he ) had signed and agreed to the brokers details confirming what they said.

They I think the form will show that he did sign agreeing he conmuted to work ( even though he doesn't ) and that he does 6,000 milleage ( closer 3,000 ) .... he is an idiot....

You mention about anything the broker missed... what do you mean exactly??

Cheers

PS The fees for cancelling were in the terms, just thought you could double check these.
Total £54.95 ( £49.95 commision £5.00 "admin" ) are these fair for cancelling poilcy made in december so four or five months?

[Loula]

Ask to see the renewal form he 'signed'. They should have a copy.

Also ask what the 'commission' is for? Do they mean to pay the policy up to date?

Also ask for copies of the policy documents/endorsements issued by the insurance company, then you can find out if they are misleading you.

Something just doesn't sit right with me on this.

Loula

[robert_harper_2000]

Also ask what the 'commission' is for? Do they mean to pay the policy up to date?

I imagine this is to pay for their costs?? surely I couldn't get this back?

Also ask for copies of the policy documents/endorsements issued by the insurance company, then you can find out if they are misleading you.

How do you mean? I did a quick copy of Zurich car insurance on their website and couldn't seem to get the insurance above £511.20 ( even playing it my brokers way by putting I use the car to get to work, 6,000 milleage etc)

[Loula]

Robert check PM's

[robert_harper_2000]

Thanks, enjoyed our chat. I've contacted them suggesting I'm looking to re-qoute with them and would appreciate a copy of what I signed to see if I could change anything to get a better qoute - from them of course.... lol

Then I'll get re-qoutes from both broker and direct with both old and amended policies. I'll compare and get writing.

Wow, understanding more and more about insurance, I'll be ready for anything I think after this! Cheers

[Loula]

Robert,

as always, you are very welcome!

Keep us all informed

LOULA

[robert_harper_2000]

At last! I have at last received money back from my broker and bascially ended up with 6 months extra for nothing ( that's how badly the broker ripped my brother off! ) I am thinking of arguing his charges of commission, admin and how he added to the original qoute for himself ( I got the qoutes direct - proving how he has upped the qoute ).

What's everyones opinions???

Cheers, Hello Loulo again

[benjee]

Robert, glad your brother got his money back but reading it sounds like his policy started in December?

Did you quote recently on his details? - if so then the rates would be different. Most insurers change rates weekly or monthly depending on market changes and claims experiences (for the company) and some will not refund a premium if you find it cheaper 5 months down the line as you accept it in good faith at the time and would have had opportunity to search round prior to renewal.

On a lighter note - well done!

[robert_harper_2000]

I doubt the qoute would have been £200 difference though... but at the very least I've got 6 months extra for nothing