Default Notice - Is It Allowed

[damo696969]

Hi Everyone,

 

About 18 months ago i took out an emergency home cover policy with royal and sun alliance. During the first year i tried to make a claim against the policy but sun alliance wriggled out of paying by something in the small print that i didnt read. Angry with what had happened i decided to cancel the policy, after many calls to them i was finally told that if i cancelled i would still have to pay the full year premium. So i decided to let it run the full 12 month course.

 

After about 6 months i noticed by internet banking that i still hadnt cancelled it, however it was now a couple of months past the first year. I tried to ring them several times to so i no longer wanted the policy but they just kept putting me on hold. I then decided to just cancel the direct debit.

 

I then received a letter off them to say the direct debit had been cancelled and i needed to reset it up or pay the full second year term. I ignored there letters but then got one saying a default notice had been issued against me.

 

My main concern is that when you take out an annual policy most financial institutions automatically just carry it on the following year unless you write to them to cancel it.

 

I believe this is wrong surely you should have to sign something to say you want the policy to carry on for another year. Does anybody think i stand a chance of getting this removed by stating this to them at the end of the day i took out an annual policy not a two year policy.

 

Many Thanks Damo

[monopoly23]

Do you still have the paperwork you originally recieved from them?

[damo696969]

I Don't think so, but i will be having a look could this help me in any way

[monopoly23]

Well if you can read through the small print that you missed when you signed, you will be able to see the exact terms of the policy - without having to send them letters and wait for a rubbish reply.

[monopoly23]

I also just found this here:

http://www.insurance.co.uk/ProductsNET/Home/Popups/infoHmeHomeEmergencyPolicyCurrent.pdf

Cancelling the policy

14. If you want to change your mind you may cancel this policy by giving us at least seven days notice in writing at the address shown on your schedule. If you do, you may be entitled to a refund of any premium you have paid for the rest of the current insurance period provided that no claim has been made during the current insurance period.

We may cancel this policy by giving you at least 14 days notice in writing at

 

 

your last known address. If we do, any premium you have paid us for the rest of the current insurance period will be returned to you.

 

Please remember this is not a maintenance contract and we will have the right to cancel if, in our opinion, the service is being abused.

 

Also this:

Insurance period

The period to which the insurance applies. This is 12 months from the start date and

also includes any further period for which you pay or agree to pay and for which we accept or agree to accept your premium.

I don't know if this refers to the exact policy you took out, but it should probably apply to any RaSA policies. JMO

 

[damo696969]

Thanks for that, I have found there terms and conditions and i think they have got me bang to rights. However the last bit that you posted seems interesting because at no time after the 12 months did i accept to carry the policy on. however in there terms it says i have 14 days from renewal date to cancel the policy in writing which i didn't do. If what you have found below is for all RaSa policies it makes a mockery of there terms and conditions.

 

Thanks again

Insurance period

The period to which the insurance applies. This is 12 months from the start date and

also includes any further period for which

you pay or agree to pay and for which we accept or agree to accept your premium.

[monopoly23]

Well I don't know if it IS for all policies, but it was under the heading General Conditions, or something like that, so I assume that they'll just put it into all their policies. If it doesn't have that wording in your terms though, I think they might be right. Alhough, I don't see why you wouldn't be able to cancel anytime you wanted really.

[damo696969]

Hi Monopoly

 

I have found it, stated in my policy book under insurance period is exactly what you have written.

 

The period to which the insurance applies. This is 12 months from the start date and

also includes any further period for which

you pay or agree to pay and for which we accept or agree to accept your premium.

 

Do you think i might now have a case of getting it removed as i didnt agree to carry on paying thats why i cancelled the direct debit.

[monopoly23]

Maybe, but I don't really know much about insurance. I think you should probably write a letter to their complaints department, stating how many times you've called, what's been said to you, and the fact that you never agreed to renew the policy in the first place. Quote the relevant sections from their T&C's.

By law, the final response from them has to be given in 8 weeks.

 

Depending on what you get back from them, I would probably try to reclaim any payments you made after the 12 months was up, and get the default removed.

 

I doubt it will be a quick or easy process

[damo696969]

Thanks for your help

[monopoly23]

No problem. Let us know how you get on

 

Please Click My Scales If I've Helped!

[Guest strangewayofsavin]

I would go to Citizens advice, you may have a case for your premiums returned, due to the fact, that whilst trying to claim, the claim was refused, therefore, if the policy does not include what you require, in contract law you can give 1 months notice to quit, dispite what is written, also the fact that most insurance policy contract agreements are whats known as standard form contracts. Standard form contracts are cheaper to produce, and are identical to each other apart from the personal details. Standard form contracts are well known to put the company using them in a position of dominance in the partnership/agreement, therefore they are subject to a termination period. Standard form contracts are usually used in mobile phone contracts, Employment contracts etc, and if challenged by taking to court, usually settle out of court. I can only quote what I know, and have not read your contract, go to CAB and see what they say.

good luck