I'm looking for some advice on the following:

My daughter lives with her boyfriend in a house where his Uncle also lives. About 3 weeks ago she come in from a night shift and went to bed. Her boyfriend's uncle (who is an alcoholic and was drunk at the time) took the keys to my daughter's car and drove off to sign on. After half a mile he was involved in an accident, arrested by the police for driving under the influence, taking a vehicle witout the owner's consent, no driving license or insurance etc.

The police impounded the car which due to the damage is now written off. However, the insurance company have refused to pay out on the claim. They have said that because the person who took the car is known to my daughter, then she is not covered.

Because the uncle is on the dole, my daughter will only receive a minimal amout in the way of compensation, (i.e. if he has not got any money, she won't get any money).

My daughter is extreemly distressed an has lost her car (by the way he only got community service!).

Could someone please tell me can the insurance company refuse to pay out under theses circumstances, and what options have we got to resolve it.

Many thanks,

James

Hi Cam

I think you need to get hold of the Terms and Conditions of the Insurance Policy as a starting point. I'm sure some of the other Caggers will advise. It does seem unfair as although he was known to your daughter he was under the influence. So maybe thats the point to look at.

Is it Hastings? If so there is a Company Rep on this site.

Thanks for the quick reply, rebel11, will do that. It's ironic that as a registered alcoholic, he has got away with community service. He has been appointed a councillor to help him rehabilitate. but the system doesn't seem to give a t*** about my daughter who has lost everything. Nobody from the police or courts have approached her and offered advice.

You need to write a Formal Letter of Complaint to the Insurance company, get a final answer, if your not satisfied, you can take the complaint to the FOS.

If it is Hastings hold fire and the Rep can look into the matter.

It's Esure, backed by Hastings.

HiHastings's PR Manager here.Sorry to hear your news but Esure is not Hastings - they are a separate company.

My daughter had her car stolen by any alcoholic about 6 weeks ago and subsequently written off.

She made a claim with e-sure but they refused to pay out, sighting a clause in the contract that if the person who steals the car is known to the owner of the car, then the claim is invalid.

My daughter is understandably upset, both because e-sure would not pay out and by the treatment she received from e-sure. She has now swapped insurance companies but e-sure now say that althought they did not pay out on the claim, she has now lost her no claims bonus.

Can they do this?

Any advice greatly appreciated.

James

Is there any third party damage? if so and they are paying out, then they can. Likewise if the policy hasn't gone the whole term (all 12 months), then they can withold until the year is up and fully paid for.

Make a complaint and if they can't resolve within 8 weeks pass the complaint to the FOS. It will cost Esure a £500 FOS case fee if your daughter goes to them and therefore it is always worth seeing what the FOS thinks about an issue. They might think that Esure have been unfair. I think it is worth a go, on the basis that she has nothing to lose.

http://www.financial-ombudsman.org.uk/consumer/complaints.htm

Thanks for the swift replies, to answer Mwynci, my daughter was living with her boyfriend in the same house as his Uncle (who is the alcoholic!). My daughter had come off a night shift and gone to bed, the uncle who was P***ed at the time, realising he would be late signing on, took her car keys. He drove 1/2 mile and (wait for it), hit another drunk driver!

The police arrested and charged both. The damage to my daughter's car was such that it was wriiten off. Ironically, the insurance was due for renual at the end of September, so yes she had paid all her premiums. Because both drivers were drunk, i suspect that both insurance companies decided not to pay out.

Initially, e-sure said because they did not pay out it would not affect her premiums or no claims and she would be welcome to insure her new car with them. However due their treatment of her, she decided to go elsewhere and now e-sure will not give her the certificate of no claims. Sucks eh!

Her new insurance company now want the certificate within the next 7 days or they will increase her premiums.

I can see genuine reasons for witholding, but if they are telling your daughter the claim will not affect it, then they should be releasing it.

The FOS sitiuation does not help as it gives an 8 week break for them if they want (they can respond on day 39), and this is by the time it gets to them (could be weeks with the FOS). But if nothing else is going right, you do have this option.

Call them find out what's up, or of you have the renewal document it may show the period, the new insurer may ask for that.

As I said I can see why they will withold it, I don't want to state why until you know yourself as it may just muddy the water.

Thanks again, Mwynci,

Once my daughter has calmed down, i'll get her to write to e-sure.