Hi!

Does anyone know how an insurances's company has to let a customer knows that his home insurances's policy has been cancelled ?

Do they have to send any registered letter or make any phone call to warn us?

When a payment hasn't been made to the insurances's company, can they just stop the policy with effect from the date of the non payment or shouldn't we have any time limit or something?

Thanks to all of you for your time and your help! F.

Hi Blabla2

If you start a thread here you will get all the help you need,

Insurance/Assurance Companies

Hi!

Does anyone know how an insurances's company has to let a customer knows that his home insurances's policy has been cancelled ?

Do they have to send any registered letter or make any phone call to warn us?

When a payment hasn't been made to the insurances's company, can they just stop the policy with effect from the date of the non payment or shouldn't we have any time limit or something?

Thanks to all of you for your time and your help! F.

They would have to send a letter by recorded post, giving you 14 days notice of the cancellation. They don't have to make a phone call to tell you (although I personally think they should, they're not required to do so).

If a payment hasn't been made, they'd usually cancel the policy with effect from the date of the non-payment.

Have to comment here, it depend's!

If the insurance company discovers something whereby they wish to invoke policy cancellation then they should write to you at your last known address giving art least 7 days notice. There is no obligation to use other than normal postal services.

However, if you do not pay a renewal premium, cover can be cancelled from renewal date.

If you pay by an instalment arrangement, the credit agreeement will stiplulate the procedure. In many cases, these state that the insurer can cancel policy cover from the DUE DATE, so if not paid on say 7th of the Month. By the time the insurance company finds out, it might be a few days later, they can cancel the cover immediately (Should they choose), retrospectively to the DUE DATE. Normally, an insurance company will not cancel on the first time, they want to hang on to your business! However, if not paid the second time or following writing to you within so many days then they will cancel from the due date. In these cases, they are not obliged to write to you to advise that they are going to cancel. You will probably just be advised that it was cancelled!

H

2 threads merged.

As has been suggested cancellation can occur for more than one reason.

Breaching terms and conditions which you agreed to when taking out the policy is the usual reason.If you are covered under the consumer credit act (as most policies will be ) then they are required to observe the criteria as laid down there.As is always the case telephone calls are not regarded as a way of conducting legal business that may later require evidence in written form,and telephone calls should never be used to conduct resolution that will later rely on written evidence/notifications.

The paperwork that you were supplied with when you accepted the insurance should provide you with all that you need to know.

feel free to ask further here if you have doubts or are still in the dark after reading the info you have from them.

Under FSA rules an insurance company has to give you a minimum of 7 days notice in writing to cancel a policy. There is no requirement for this letter to be sent via recorded/registered post etc. They also don't need to state a reason for cancellation, nor do they have to disclose this if you query it.

I'm gona read between the lines and assume you've had a policy cancelled for non-payment.

As stated above, if you default on a payment, normally most companies will write to inform you of this and will advise you they will re-present the payment on XXX date (usually 7 days from the date of the letter) which gives you time to ensure sufficient funds are availible.

If you default a second time, then you will normally get a final letter advising that the payment must clear this time or the policy may be cancelled. If you default a 3rd time then you will get a letter advising you the policy will be cancelled in 7 days. All these letters will have a phone number for you to call and speak to a member of the accounts/payments/finance dept to discuss your situation.

In regards to the date of cancellation, depending on the company this will either be cancelled back to the last day you had paid for cover (i.e if you paid a month in advance say on the 1st of april, the policy will be backdated to the 1st may) so the policy is cancelled with a zero balance. OR some companies still charge for "time on risk" which means the policy will be cancelled with effect from the date stated on the letter, and you will need to pay for any cover that you've had and should have been paying for.

Hope this helps

DA

As per above, if the company has applied for the money by DD and its not there then they will send letters etc. However, if you have cancelled the DD instruction at the bank, this can be seen as a cancellation by you of the policy. Some companies do have this written in their policy wording under the payments part, but Ive never know a company to follow this wording to the letter, they would like to try and get the money 1st

What if we don't have the policy contract anymore?

Has the Bank got the right to refuse to send us a copy we requested to them?

Thanks again!

All your help is much appreciated! F.