Hey guys, I thought I will update you with positive and useful news!
After fighting for 8 bloody month against One Call Insurance company, they are also known as XS Direct Insurance and Calpe Insurance Company, I finally won the case against them.
Yesterday, I received my final decision from Financial Ombudsman Service (FOS) which will be copied below. I won't put reference number, or the person's name who made a final decision, however I will put all the decision info.
By the way, when I did my first ever complaint with FOS I lost the case. The investigator did not even looked properly at my case. I was nearly teaching her what to do. Then I proceeded the case further to actual ombudsman.
I was stretching the case for sake of getting FOS respond and not attend the court (as I was due to go to court as I mentioned in my first post). So far I never had a court, however I should attend on 8th of October, but by providing this FOS letter I will win the case. FOS obligates insurers to provide an indemnity letter, and this letter is something court will need in order to ‘more’ easily close the case, as the judge is going to be like; ok so everything is sorted therefore no need my involvement anymore.
The Financial Ombudsman Decision:
Mr S complains that Calpe Insurance Company Limited wouldn’t indemnify him under a
motor insurance policy for a period during which it didn’t know about his car’s new number
plate. He says it also refused to renew the policy.
Mr S bought a new car (“car B”) in October 2016. Shortly afterwards he put the private
registration plate from his old car (“car A”) onto the new one. He informed the DVLA but
didn’t tell Calpe. That meant databases weren’t updated. In February 2017 Mr S was
stopped by the police for driving without insurance. Calpe covered the car for the rest of the
policy year as soon as it was told about the change of number plate. But Mr S was still faced
with court proceedings or a fine for driving without insurance prior to that.
Our investigator thought Calpe had acted reasonably. She said the policy required Mr S to
inform Calpe of the right registration number, otherwise car B wasn’t insured. She also said it
was entitled not to renew the policy - although it couldn’t find any record of deciding not to do
so. Mr S said if Calpe insisted car B wasn’t insured from October 2016 to February 2017 he
was due a partial refund of premium.
I thought the policy made it clear that consumers must inform Calpe of any changes, as the
Motor Insurance Database (“MID”) has to hold a car’s correct details. Mr S had accepted he
forgot to inform Calpe or his broker of car B’s change of number plate. But it seemed the
original registration plate on car B was suspended, as Mr S had told the DVLA about it.
Calpe said as car B with its new plate wasn’t mentioned in the policy documents, or
recorded on the MID, Calpe wouldn’t have had to cover any claim involving it. And as Calpe
was still carrying the risk for car B with its old registration plate, Mr S wasn’t entitled to a
part-refund on the policy.
I thought Calpe was right to say that, under the strict terms of the contract, the car wasn’t
insured from the point the plate was changed until it was informed of that. But in terms of
what was fair and reasonable, Calpe had accepted the risk on the car for the year. Mr S had
paid for that cover. Calpe was never carrying any other risk – car B’s original registration
wasn’t being used once the new plate was fitted. So I thought regardless of the plate that
was showing, Calpe should provide Mr S with a letter of indemnity confirming the car was
covered for the year. Mr S would be able to use the letter in his upcoming court hearing.
Since Calpe said the policy’s non-renewal wasn’t its decision, I thought it may be an issue
for Mr S to ask his broker about.
I asked the parties to comment on my provisional findings. Mr S accepted them, but made
no comments. Calpe didn’t comment at all.
I’ve considered all the available evidence and arguments to decide what’s fair and
reasonable in the circumstances of this complaint.
As neither party made any comment on my provisional findings, I see no reason to depart
my final decision
My final decision is that I uphold this complaint. I require Calpe Insurance Company Limited
to provide a letter of indemnity to Mr S within seven working days of the date of this decision.