insurance charging extra for failure to disclose and wont settle my claim until made

[l.capo]

hi i have car insurance and have recently had my car stolen so had 2 make a claim. whilst processing my claim i was told that they done a check and noticed that i had already made a previous claim with different insurer and didnt notify them of this claim. i explained i had notified them but as i took out policy on internet maybe mistake, as my policy docs clearly state that my bonus is 0 so why would i think different as i had 3 years bonus previously. they told me part of policy was taken out over phone so they will listen to call and get back 2 me. chased them up after couple days they then said it would still take longer up to 2 weeks.

got a call today saying they still haven't listened to call but there underwriters have told them regardless of call i should of notified them once my docs came as it should state that i have had no accidents. i told him i woul need to check my docs cause not at home when he called. he then said because my policy was based on me not having any previous claims that i should have paid nearly double what i did pay. also unless i do pay the extra i should have they are not going to look into my claim any further.

have now checked policy docs and on the front it does state i have 0 years bonus but on the back it states i havent had any claims.

basically i have some questions.

 

1. is this right for them to charge me more when as far as im concerned i did notify them about previous claim.

2. can they tell me unless i pay extra my claim cant proceed.

3. will they make me pay extra then void my claim for failure to disclose.

4. cant they just take extra from my settlement cheque.

 

any help appreciated.

[Trojan1401]

Unfortunately this is one of the dangers of internet/phone policies and highlights the necessity to read the statement of fact in full when received.

 

As you had nil NCB then I would expect the call centre operative to have asked whether you had had any claims/accidents of which you would've said yes. I would therefore persue them for a copy of the tepelphone transcript. It does appear that they have listened to it and know you told them. Send a SAR to them.

 

In the meantime, in answer to your points raised ;-

 

1. They can charge more as if the claim was included then the premium would include a loading for a claim/nil NCB. As it was not included then you may even have been allowed an introductory bonus. Ask for a breakdown on how the two rates were calculated.

2. Yes the can. If the premium is paid on the "correct" basis the subject to underwriter's agreement, the claim should be paid as if all material information disclosed.

3. I doubt it as that's why they've requested the additional premium.

4. Yes they can and should, provided that you agree.

 

I would still however persue them for a copy of the transcript/recording as if you had to speak to them before being accepted for the internet policy it would have something to do with the fact you had nil NCB and probably disclosed the incident.

 

Who is the insurer ?

 

Keep us informed of this and if need be you'll get further advise.

[l.capo]

hi thanks for replying. insurance with direct line. just came off the phone to them and they have said i have to make payment to bring premiums up to date. no option to take out of settlement cheque.

i will definitely be sending in S.A.R. i will make payment today as need this sorted no car is killing me. my fear is that me is paying some sort of admission of me failing to disclose relevant details.

[Trojan1401]

Good old Direct Line !!!

 

Definately persue transcript of phone conversation and state that the additional amount paid is not an admission of fault & follow up with an e-mail or letter.

 

Also, do not let them cancel policy, simply do change of vehicle.

[l.capo]

ok thanks very much for your help. much appreciated.

[Planner]

I agree with the need for the phone conscript to be checked. I had a problem with a certain major brokers (who where not KwiK and certainly didnt Fit, hint hint). I rang up about 6 months into a policy to add business cover for my car. She asked me the usual questions and then said I shouldnt have been issued this policy in the first place because I had no, noclaims (not through accidents). She came back that the policy needed to be reissued at double the price!!!. I argued that I would never ever say I had x years no claims when I didnt. So she said someone will check the transcripts.

 

Someone got back to me a couple of days later, to say the had checked the transcripts and I had said I had x no claims!!. I again said no way, I want a copy. To which the reply was it will be esculated and someone will get back to me. The next day a manager (yes an actual manager) got back to me and said yes sorry its our fault!!.

 

So thats why you must insit on a transcipt copy otherwise they will lie.

[Darkangelsdelite]

I agree that as the policy holder, you are responsible for making sure the information you give is correct and accurate (this is called the duty of disclosure) so by not disclosing a claim, you haven't given direct line all the info they need to assess the risk correctly and therefore charge the correct premium. Now that this has come to light, they are within their rights to put the claim on hold until any additional premiums have been paid.

 

That said, if i read it right, it sounds like you got a quote over the internet but then called in and accepted it over the phone.

If this is the case then you may well have a case to argue as the consultant who set up the policy should have confirmed all the terms/conditions etc and also re-itterated what you had put in on the internet (car make/model, drivers and also claims/convictions).

So i would escalate this as a complaint and tell them you want the call listened too before you pay them anything, i'd probably hold off on the SAR for now as it may not be required. Once they have listened to the call, if they find that you did disclose the claim and its their error for not adding it to the system, then they may need to just override any additional premium and pay out on the claim. But, if there is no record of it mentioned on the call and it doesn't show on your docs, then i'm affraid you're just gona have to bite the bullet and pay the additional premiums.

 

Let us know how you get on.

 

Hope this helps

 

DA