Help! MCE Insurance not paying out after rejecting first offer.

[Lionheart.RW]

Hello all

 

I found this forum after a quick Google and ended up reading into some of the insurance nightmares on here. It seems these big companies prey on the vulnerable and hope you roll over and play dead while they take your money and accuse you for being unlawluff. Their tactics are dirty and un-excusable! My Grandpa always used to say "The bigger the money, The bigger the fiddle". It seems iv found myself in such a dylema!

 

Recently I had my beloved original PX 125 Vespa Scooter (Douglas) 1987 Stolen. I paid £1500 for it and only had it for about 12 months.

 

The bike was found and recovered from some local yobs who had tottally detroyed it. They had spraypainted it Black (from white) and broke most of the exterior I assume through hotwiring it and giving it a good jor ride. The Scooter was recovered by the insurance company and apparently scrapped.

 

Weeks passed and they didnt even contact me, after a few weeks I contacted them to find out what was happenening and they just fobbed me off saying the guy who was dealing with my claim was on holiday and he would be in contact when he returned. I left it a few days again with no response I contacted them to hear the same crap that the guy who was dealing with my claim on this occasion was "NOW OF ILL"!!

 

Im sure you can imagine at this stage I started to get slightly aggrevated. About 7 weeks had passed and I they couldnt even give me a curticy call to update me on my claim. Eventually I managed to contact the guy dealing with my claim and after 2+ months I finnally recieved an offer of £850 with an excess deduction of £250 resulting in me only getting £600 for a scooter I paid £1500. Not to mention I only drove the thing twice since purchasing it!!!

 

The thing is I bought this scooter cheap and they are selling on ebay and other websites in excess of £2000 so I dont understand at all how they valuated the scooter at £850. Iv never had to make a claim before and have been a long standing customer of MCE for years and I wasnt happy with their offer.

 

In turn I decided to send them an email of three screenshots of three scooters that where identical to mine that had sold on ebay recently. This would then give them an idication on how much they where going for and hopefully persuade them to re-evaluate there offer. BUT OHHH NOOOO!

 

Out of the three pictures I sent them 2 had sold for over £2000 and one had sold for £1550.... After a couple of days after sending the email I recieved a phone call from the guy dealing with my claim he continued to tell me that because In the email that I sent him I stated that the vespa's where "Exactly Identical" to mine they where marking my insurance void and revoking my offer and closing my case.

 

Apparently in the description of one of the Vespas I had sent him from ebay it stated that that particular vesper had an upgrade kit on it making it faster than a 125cc and because I stated they where identical they have conveniently assumed mine also had an upgrade kit on it also and in turn nullifying my insurance because I didnt declare it.

 

I proceeded to tell the gentleman that my scooter certainly did not have an upgrade kit on it and I obviously over looked one of the photos I had sent him. He simply continued to tell me there was nothing he could do and that my insurance void.

 

And thats pretty much how our conversation Ended.

 

Ive recently recieved some bad news regarding my health and at the time of the phone call I wasnt in the right frame of mind to try and defend myself resulting in me ending the conversation. I told them I would be back in touch to discuss further at a later date.

 

 

I know I shouldnt have stated that all the three scooters where "Exactly" identical to mine because they where not. I have obviously chosen a poor sequence of words that they have picked up on and they have penialized me for it. As I mentioned the email I sent was just a guidline to show them the current market value of the bike.

 

Surely theres something I can do??

[BankFodder]

Well you certainly should have taken more care when trying to compare your bike to others. However, they should be much more sensible and open to dealing with errors.

 

Secondly, I completely agree with you that you are entitled to the replacement value. I don't think eBay was a good place to go. I think you should be getting comparisons from proper dealers who are selling those scooters at the full replacement value.

Secondly, I would have another telephone conversation with them but this time read our customer services guide first and then implement the advice there. I think that the things that you are being told over the phone are nonsense and will be extremely helpful to you later on when you come to make a complaint.

 

Once you have done that and you have got your comparative material, come back here and we will explain to you the best way to make a serious complaint which hopefully will get the matter resolved.

If I were you I would begin by going through all the bike magazines and dealer websites and getting your information and your comparative material from there.

 

Incidentally, this is not the first time that we have had reports about MCE insurance making arbitrary and peremptory – and in my view unlawful – cancellation of insurance policies. It is an extremely serious thing to do and they need to be stopped.

[unclebulgaria67]

Disgusting behaviour by MCE and you should send a recorded delivery letter to the CEO of MCE with full details of your complaint.

 

They should have offered you the current replacement value for the scooter and on receiving your complaint should have explained the process properly for negotiating a higher value. Surely there are Vespa or other Scooter specialists who could have confirmed in writing what the replacement value was. Not sure Ebay ads with details that are different to your Scooter were helpful.

 

Then cancelling the Insurance due to some misunderstanding about Ebay adverts is very silly.

 

You could go to the FOS, but that would take time and you need to give MCE opportunity to resolve first. Taking MCE to court would also not be quick and you have to always try to resolve first, before involving the courts.

 

Have a look at ICOBS which are the FCA rules applying to Insurers and also Treating Customers faiirly, also FCA. MCE have not complied with ICOBS in regard to clarity of communications and handling your claim fairly, not using technical issues to avoid a claim and cancel the policy.

[BankFodder]

I agree completely with the advice given above except the rather than write to the CEO (who will get this kind of stuff all the time), you should write to Amy Shilton who is there compliance officer. She is the one who is responsible for making sure that the company meets its statutory obligations under the DPA and also under ICOBS et cetera.

 

She will very rarely have any direct contact with customers and so a message addressed directly to her will attract attention

Amy Shilton

Compliance Team Manager

[email protected]

 

Secondly, before you do any of this kind of thing, I would make sure that I gather the information I suggested in my first post – comparative material and also a recording of any silliness that is said to you by their customer service people over the telephone. If you had a recording of the kind of dismissive attitude which you apparently have been confronted with in your first phone call, then I'm quite sure that Amy Shilton would have something to say about it.

 

I think that it is very important to be fully prepared in terms of having all your comparative material ready and also evidence of any incriminating conversations so that when you make your complaint, it is compelling and also potentially embarrassing for them. Preparation is everything.

 

I would also be seeking a modest figure in compensation for their attempt to cancel the policy. About £150 feels about right

 

 

I suspect that she must know what MCE's legal duties are, even if the rest of them don't.

 

Don't worry, I'm pretty certain you will get your replacement value as long as you follow the advice we give you here.

[huggy41]

my be these guys can help.

http://www.scooters.co.uk/index.php?webpage=product_detail.php&product_id=69517&cID=25599

[Lionheart.RW]

Hello

 

Thank you so much for your very helpful advise!

 

I tottally agree with you and will definetly do my research as you have suggested. If i'm being honest I think I underestimated their power and in the same likness I expected them to take some action from my simple email. How wrong I was.

 

I guess I need to get some more official examples and start to formulate a more in depth complaint highlighting my unprofessional experience.

 

Ill read up on the customer services guide etc and keep you posted on my next move.

[Mwynci]

You mention the bike has been scrapped, if this is the case and they have done this without your permission, this is a massive no no in the eyes of the FOS.

 

This could be a huge bargaining tool for you.

 

I'm not sure if MCE are just a broker, if so, your complaint may be wasted by going to them when you should be going to the underwriter direct.

[BankFodder]

You mention the bike has been scrapped, if this is the case and they have done this without your permission, this is a massive no no in the eyes of the FOS.

 

Well spotted. This passed me by.

 

Were you consulted about the scrapping of this bike?

[Lionheart.RW]

I asked for it back and they said "By law, if any of the bodywork is damaged they have to scrap them"?!

 

I take it thats a load of cods wollop?

[BankFodder]

It's a load of rubbish and of course it is more evidence of unfair treatment. Luckily, because you followed the advice in my first post, read our customer services guide and implemented the advice there, you got a complete recording of this phone call which we can then use against them. Well done

[Mwynci]

I asked for it back and they said "By law, if any of the bodywork is damaged they have to scrap them"?!

 

I take it thats a load of cods wollop?

Yes and no, theyhave a duty to deal as per the abi agreements that if a vehicle is deemed uneconomic, structurally dangerous, burnt our, stolen it is placed on the MIAFTR register.

 

This does not mean they can scrap your bikewithout your permission. They can settle in full and have assumed permission, but even then they are chancing it. Even though it may say they will dispose of it in the policy they have no legal right to do that without you're permission.

 

The FOS really dislike insurers doing this and will award compensation of around £500 for it.

 

Put this together with any premium refund (it'll be full if they void) plus interest at 8% pa, a £550 (not 100% sure, I rarely work with insurers these days) FOS fee, the salvage cost (and one of the lamest excuses ever to repudiate a claim, they would bad nuts not to settle this.

 

Go at them all guns blazing, tell them not only is their repudiation ridiculous, you having given them permission to dispose of the bike. They should squirm.