Insurance cancellation - advice required.

[tango123]

I had motor insurance cancelled by car insurer several days before it was due to start because they said I did not meet the underwriting criteria. They refunded the policy.

 

I was worried about needing to declare the cancellation to other insurers in the future which would greatly increase premiums. The insurer however told me the cancellation did not need to be declared to other insurers. The advised that the information would not be shared with any databases for other insurers, so other insurers would be unaware.

 

However some time later I checked the MIB MID and lo and behold the policy details were in fact registered there with the policy start date showing as the date it was originally supposed to start and ending on the same day.

 

I complained to the said insurance company who are now refusing to have the policy details removed from MIB despite their prior assurances that the policy details would not be shared.

 

Do I need to declare the cancellation to other insurers despite what the insurer is saying and also how do I get this entry in the MIB removed?

[unclebulgaria67]

No you don't need to declare cancellation.

 

The MIB entry was simply to register the car being Insured from the start date and that it had ended.

 

So you can simply just arrange alternative Insurance.

 

Many people misunderstsnd the question in regard to cancellation. The question is whether you have ever had insurance cancelled. What Insurers really mean by that is that you have had an insurance cancelled because Insurers believed you had deliberately given wrong information, there was an attempt to commit fraud or you failed to disclose information so could not be trusted.

 

As long as Insurers have confirmed in writing that you do not need to declare cancellation, then you are safe not to mention it to other Insurers.

[tango123]

I had my motor insurance cancelled by a car insurer several days before it was due to commence/go live, back in 2018, because they said I did not meet the underwriting criteria. They refunded the policy which had been paid in full.

 

Despite the policy never being incepted I was still worried about needing to declare the cancellation to other insurers in the future which would greatly increase premiums, however the insurer told me in writing that the cancellation did not need to be declared to other insurers. The policy was never incepted and not at risk. They also told me in writing that the information would not be shared with any databases for other insurers, so other insurers would be unaware.

  

However it was pointed out to me by someone that a future insurer could argue that it’s not for the previous insurer to decide what should or shouldn’t be disclosed to any future insurer.

 

I don’t know if this is a legal, fair or valid point of view which I should be concerned about.

 

Currently I’m not declaring the cancellation when getting quotes online in the comparison engines. Am I safe to continue?

 

Many thanks in advance.

[dx100uk]

old and new threads merged.

 

don't think you are doing anything wrong no?.

 

dx

[tango123]

Many Thanks. Do you have any thoughts or observations on the specific point below?

 

"...However it was pointed out to me by someone that a future insurer could argue that it’s not for the previous insurer to decide what should or shouldn’t be disclosed to any future insurer."

[unclebulgaria67]

Yes a future Insurers could argue that a previous Insurers statement, that you do not need to declare something to future Insurers could become an issue. 

 

But it would have to be something that presented a significant risk factor to a new Insurers. For example, if your previous Insurers stated that you had claims with the wrong date recorded, but they could not amend their systems and that you did not need to tell future Insurers, that might cause you a problem.  As you might declare the correct date of claims and this then clashes with the claims data recorded by previous Insurers. Could then stop you receiving quotes. The wrong claim dates may affect the premium calculation.  The wrong claim dates issue may cause an issue with future claims, if the Insurers picked up the issue.

 

My experience is that I would never tell a customer to not disclose something which was going to cause a problem with future Insurances. Cancelling a policy due to a customer not meeting an Insurances companies underwriting criteria is not a recorded cancellation which would cause a problem with future Insurances. Sometimes a customer then mentions the cancellation to another Insurers because they think they have to declare everything and they come back asking for a letter explaining cancellation reason.