Natwest nightmare, accident insurance no payout.

[Nomis212]

Hi

History I started a business and banked with the natwest, I had a loan (unsecured ) never missed a payment until i had a accident at work, I asked the bank if i could have a payment holiday as i was unable to work and had used the funds from my account to pay the loan ,the reply was no holiday but we will lend you MORE so i could pay the loan.

I also had a accident insurance policy and when I submitted the claim i was given 90 days to get a full medical report of my condition , however as this was under the NHS I could not provide it in the 90 days so my claim was void, its something you pay and hope you never need. Can you guess who the insurance was with ? Yep NATWEST. Paid in for years.

Back to the loan, each month i paid them all i could but I had to reduce the payment as our income has reduced. Now I have a ccj and the bank now are going to secure the loan on our home.

I have never tried to avoid paying as i do owe them the money. So if you think you build a good relationship with the natwest you do until you need a little help.

if your thinking of a loan or insurance please don't use the NATWEST. STOP THINK AND GO TO ANOTHER BANK.

 

Thank you for reading this.

SIMON

[BankFodder]

I don't have much time at the moment - but I don't think that you need to be troubled by the 90 day rule. It doesn't affect the risk and it is a try-on.

Come back here tomorrow and I hope that I will have expanded the advice by then.

In the meantime, get the medial report.

Do nothing on the phone.

Keep all details about the NHS delay

[Nomis212]

Thanks for your reply but this dates back to 2009 I should have explained more. I'm just trying to let others know what the natwest is like.

I would like to post it on every site i can , it's too late for me but not others i am still unable to work (not on benefits ) and still being hounded by the natwest.

 

Thanks

[BankFodder]

I don't think that the delay poses an insurmountable problem.

 

Presumably you did start the claim in good time?

 

Can you please tell us what happened, what you did, when you did it, and what exchanges have you had with them.

[Nomis212]

hi in 2009 i had a fall from my van, as i was unable to work i rang the natwest insurance to get a claim form, i filled it in and returned it but i did'nt have a medical report at that time i rang them a few weeks later and was told i must submit a full medical report within 90 days. it was 4 months just to get a mri. i rang the insurance again and was told my claim was void as i had no report. i have now had 2 operations and have a spinal cord stimulator and lots of pain medication.

[BankFodder]

I'm responding from a phone at the moment so can't write to much

 

 

 

 

 

I'm fairly confident that you can make a valid claim and that the insurer is just avoiding liability.

 

 

I'll try and write Mo re later but I'm away for a few days

 

 

please start assembling a complete file off medical data, statements and details of witnesses etc

 

 

could you send me an email on our admin email account with a phone number so that we can try started quickly while I'm away

 

 

put "van" in the subject line

[BankFodder]

you haven't contacted me.

please do so as quickly as possible.

I'm still using a phone so it's a bit tricky - but it is clear that they have denied liability on grounds which are ancillary to the risk which they covered you for.

This is not only against basic contract law but it also puts them in breach of their statutory obligations under COBS and ICOBS which are regulations produced by the FCA (FSA as-was)

If I can figure out how to copy and post a link to the regs her, I will do.

I rate your chances of success as pretty well 100%

[BankFodder]

I can't do it.

Google

FCA Handbook

find ICOBS - insurance: conduct of business regs

see section 8 on claims handling

rule 8.1.2 is exactly your situation.

NatWest are breaking the law and it will be a pleasure to help you sort out these bullies

[citizenB]

http://fshandbook.info/FS/html/FCA/ICOBS

 

This is the link that should take you to ICOBs

 

If you scroll down the menu, then Bankfodder has directed you to

Section 8: - 8.1.2

 

 

Meanwhile, I have also sent you an email. Would you please respond urgently.

[BankFodder]

I still haven't had any response from you but if the bank are taking you to court to put a charge on your property then you have an excellent defence which will block them.

also if they have lent you money because of your inability to pay because they have not paid out on your policy, then you have strong grounds under the Consumer Credit Act to say that the loan is invalid because they have unfairly exploited their dominant position against you.

 

please contact us.

do not do this alone-although it is probably fairly straightforward

[BankFodder]

by the way, if you are using a solicitor - then we are normally much better than most solicitors - and our help is completely free - no strings!

[Nomis212]

Hi all thanks for your help and advice Just to update, after looking around on the forum I have found other information and various rules and regulations that may be helpful in potentially making a claim. Lots more reading to do i am now going to send Natwest a SAR and see what information they hold on me. Any advice welcome.

Thanks simon

Edited May 8, 2013 by Nomis212

[citizenB]

Just to update, after looking around on the forum I have found other information and various rules and regulations that may be helpful in potentially making a claim.

 

Just let us know if you require any help.

[havinastella]

Hi all thanks for your help and advice Just to update, after looking around on the forum I have found other information and various rules and regulations that may be helpful in potentially making a claim. Lots more reading to do i am now going to send Natwest a SAR and see what information they hold on me. Any advice welcome.

Thanks simon

 

That would be my first port of call, well done.

[BankFodder]

This is really brutal treatment by the NatWest bank and their insurance arm.

Just to recap, we have a small business man who is doing well - no debts, everything under control and acts prudently to protect himself and his family by taking out an accident insurance policy which he maintains over several years.

He also has a smallish loan.

 

He has an unfortunate accident - which eventually results in sufficient permanent disability to be unable to work for life.

 

He puts in a claim under he insurance policy.

He fills in the form.

A couple of months later he still hasn't heard anything and so he calls them and he is told - you didn't supply full evidence with your claim. Your 90 days for doing this has now expired so your claim is now void and we won't be paying you anything.

 

At the same time, this man contacts NatWest - and says that he has had an accident and is unable to work for a while (the extent of the injury has not yet been appreciated ). He tells them that he has paid the loan instalments correctly for several years - can he have a short repayment holiday while he sorts himself out.

The bank says - No.

The bank says, however, we'll lend you more money so that you can use the money to service your original loan.

Later on the man is still in difficulty - the banks says, - Don't worry, we'll lend you even more money so that you can service the loan you borrowed to service the loan!!

 

It now becomes clear that the injury is permanent and very serious.

It now also becomes clear that the loan+loan+loan commitments are too great. The family struggles to deal with it all. Many belongings are sold off to help to meet all of the repayments - but it isn't good enough.

 

Eventually, the bank instructs their solicitors and a claim is issued.

The man doesn't realise that the bank and their insurers have acted unlawfully - as well as shockingly immorally - and so he doesn't defend the court claim.

The bank is given judgment - with costs.

The solicitors have now indicated that they they will be seeing a charge on the property.

 

Next step - probably order for sale and eviction.

 

Bravo NatWest bank.

[BankFodder]

It is quite clear that NatWest have committed at least the following breaches

 

 

• They have breached the insurance contract because they are not entitled to void the contract because of the failure by Nomis212 to carry out some administrative requirement which does not affect the risk which has been undertaken by the Insurance policy. (this is a bit like the law on unenforceable penalties)
  
• For exactly the same reason NatWest are also in breach of the statutory obligation under ICOBS - R.8.1.2 which specifically forbids denial of cover on the grounds stated above.
  
• NatWest are also in breach of their obligations to treat their customers fairly under COBS
  
• I think that they have also lent money irresponsibly
  
• I also think that they have acted in bad faith and so that there are grounds for saying that they may have invalidated the two subsequent loans under s.140A and s.140B Consumer Credit Act.
  

 

By any measure, the NatWest bank have acted appallingly - but of course, what's new. This could have been any other bank and you would get broadly the same treatment.

 

Anyway, we will be assisting Nomis212 over the next few months and I am confident that there will be a positive outcome.

[BankFodder]

Incidentally, it occurred to me that if you can show that you did make the claim back in 2008 and they refused you, you will also be entitled to receive interest on the insured sum at the rate at least of 8% per year.

This will add up to a lot of extra money

[tallorder]

This is really shocking behaviour.

 

I had a friend work for insurer for a while and the description of some of the office games would make your blood freeze.

 

One that stuck with me - as it seemed to be my file in question was the drop the file to the bottom of the pile 'game'. As stupid as it sounds one random file is labelled (usually with a post-it) and it keeps being put to the bottom of the stack and the person who see it gets a penalty from their colleagues.

 

Insurance is meant to be there when you need it. No delay and utmost professionalism.

 

Sadly this looks to be almost as endemic with insurance as the banks are with 'levies'.

 

You'll enjoy the 8% more than you can imagine when this gets resolved.