Insurance refund issue

[metalrat]

My partner took out comprehensive insurance, she paid for in full for a year via the telephone on 17th October 2011 which was also the start date.

 

The insurance company then wrote to her and informed her that she will not be covered after 25th November 2011 and advised her to get cover elsewhere,

it appears an endorsement which was disclosed verbally was not considered until after.

 

Today 2/12/11 she telephoned the company and asked when she would receive her refund and for the amount value to be returned.

 

The insurance cost initially was £784 and the refund she would be eligable for would be £376

that means the month insurance she enjoyed has cost her £408

 

Does this seem correct?

it seems awfully excessive to us and how do we go about challenging this?

 

The operator on the telephone was very curt when asked for a breakdown,

when it was suggested we take it up with trading standards the operator said "go ahead then if you want"

he also said we would have to wait 30 days for a refund from today.

[raydetinu]

I would certainly challenge the cost as it was their error, and really should only charge you on a pro-rata basis fir the month the insurance was running!

[kabukiman]

Looking from a different view, can the insurance be cancelled just like that if material facts have not changed? Are they obliged to supply the insurance the same as a product bought and paid for, or insurance comes under different rules.

[raydetinu]

They can cancel it for what ever reason they want, with sufficient notice; but must be fair regarding refund, you should only pay what you have used.

may also be difficult getting new insurance because you have to delare if any previous insurance has been refused or cancelled.

You need a letter or Email from explianing why it has been cancelled, to show new insurers.

You need to follow up in writing/emails, no phone callls.

[metalrat]

We have since got new insurance however our problem now is how do we challenge the excessive charging

The refund will take 30 days for them to process which we feel is too long

I changed my insurance company a few weeks ago when I changed my car as it was a better deal even with the charges and received my refund within 3 days and very small usage charges were applied

This company, don't know if I can name them take a different approach when it comes to refunding money

[Ed Gasket]

Which company is it? (so I can avoid them)

[metalrat]

A & A Group Ltd.

Just had an automated reply which states they will reply in due course

I could ring them (again) if I wish

Sigh

[raydetinu]

no phone calls IMO.

[metalrat]

Received an email today explaining how our £784.19 insurance payment is broke down and how the refund is worked out

Does anyone have any knowledge to inform us if this is correct?

 

The charges are calculated as follows:

Your insurance ran with us from 15/10/2011 - 28/11/2011 (should be 25/11/11)

As any month or part month is taken into consideration, this period is considered to be 2 months on cover. After 2 months on cover, your insurers retain 40% of your entire annual premium.

Your premium to your insurers was £502.44.

 

£502.44 – 40% = £301.46.

 

We also have a standard administration charge of £25 for cancellations.

 

£301.46 - £25 = £276.46.

All that you have been charged for is the time that you had on cover, plus our standard £25 cancellation fee.

 

 

 

Premium due to insurers: £502.44

 

Arrangement fee: £147.80

 

Breakdown cover: £49.95

 

Excess protection: £40.00

 

Legal cover: £24.00

 

Personal Accident: £20.00

 

Total: £784.19

[raydetinu]

Is all this explained in their terms and conditions? however it is not her that is cancelling the policy it is them due to their error so would not apply!

Suggest you think about taking them to small claims court to resolve and tell them that.

[metalrat]

Should we contact trading standards or ombudsman first before stating we are prepared to take them to court?

Not being an expert in this sort of thing we are not sure about what action to take

Thanks

[Johno100]

Appears that A & A Group are brokers not insurers. If I was the OP I would first request written confirmation from the insurers of the premium they are charging for the short period of cover. It wouldn't be the first time that an insurer refunds the broker on a pro-rata basis but the broker only passes on the short term calculated figure to the customer.

 

In my view the refund should be on a pro-rata basis.

[raydetinu]

IMO dont bother with the FSO or insurance ombudsman, tkaes too long.

Just write to them, giving them 7 days to respond, asking for your refund on a fair basis as it was them that cancelled the insurance and their error; and if not you will commence court action against both the brokers and the insurance company.

Keep all correspondance and proff of details of your application with all the details and there letter/emails about the cancellation.

You have a very good case and my bet is they will settle as they have no defence.