can we just leave the insurance to expire

[mike5100]

The insurer has quoted a ridculously low refund value for cancelling a policy on a motorcycle we have sold. There's about 3 months to run, and the extra year NCB would be worth having if we leave it to run it's course. But are we allowed to do this?

Thanks

Mike

[Mossycat]

The insurer has quoted a ridculously low refund value for cancelling a policy on a motorcycle we have sold. There's about 3 months to run, and the extra year NCB would be worth having if we leave it to run it's course. But are we allowed to do this?

Thanks

Mike

 

That's an interesting question.

 

In order to obtain insurance certain conditions have to be met, the most salient are it must exist, it must be legal, you must have an insurable interest in it. There is no doubt that the first two conditions are met, however when you sell it you no longer have an insurable interest in it.

 

Having said that, you are not thinking about making a claim on it so the principles of insurable interest don't apply in this instance (that's the principles of NOT the rules of).

 

When I first started in insurance in the early 80's I always wondered why people didn't insure a car that didn't exist simply to build up a no claims discount, because the discount is for not making a claim. As I progressed and did my insurance exams I began to understand why this was illegal.

 

Nowadays with all the databses linked there is a chance that someone somewhere might realise it has dual insurance (if the new buyer insures it), that may or may not prompt a closer look into who is insuring it and why, then again it may not.

 

If that happened and someone knocked on your door and you explained that you simply forgot to cancel your policy I doubt it would go any further. It's certainly not going to initiate a fraud investigation or any criminal proceedings, people do forget to do things and it did cost you the return of rebate.

 

What you decide to do is ultimately up to you.

 

Hope that helps

 

Mossy

[vusys1]

you could see if they will suspend the policy, you carry on paying the installments etc,then at renewal you can either take a refund on the payments made or take the NCD