Insurance issue.
Discussion
I’ve just had an insurance policy cancelled, as they say I didn’t disclose a claim.
Last year I had my garage broken into and a car was stolen.
I reported it to my insurers, but later that same day we recovered the car, and I withdrew the claim.
This has gone down on my records as a claim, when no actual claim was made.
This is causing me a bit of grief with insurance now.
Is there anything I can do about it? As I feel it’s unfair.
Last year I had my garage broken into and a car was stolen.
I reported it to my insurers, but later that same day we recovered the car, and I withdrew the claim.
This has gone down on my records as a claim, when no actual claim was made.
This is causing me a bit of grief with insurance now.
Is there anything I can do about it? As I feel it’s unfair.
Insurance Ombusdman said:
Insurers are obliged to make a record of any incident they are made aware of, and the key point here is that this obligation applies regardless of whether it leads to a claim or not. We would only ask an insurer to remove or amend information they have reported on CUE, if this was factually inaccurate.
The above is from a fairly recent decision in a case similar to yours - car stolen, theft reported, car found, claim withdrawn.In this one, the policyholder's premium increased four fold as a result of the 'non-claim' and a complaint was made to the Ombudsman.
The Ombudsman rejected the claim stating that the insurer had done nothing wrong.
If the same applies to your case, your best bet might be to go back to your insurer, try to speak with a decision maker, explain the situation (i.e. you were not attempting to defraud or mislead) and hope they revert their decision to cancel your policy.
Decision DRN-4397575 (PDF)
Do you mean it’s a new policy that has been cancelled due to non reporting or your existing policy that they have just a cancelled ?
I suspect it’s the former ?
As such that would seem a tad unfair and falls foul of TCF or whatever it’s called these days.
If a claim was put in and then withdrawn it would still of course be on record with a presumably zero quantum marked against it and yes yin should have declared it but with the full story.
If you didn’t declare it at all when taking out the new policy I can see why they might want to arguably re- underwrite the risk and potentially charge you a higher premium but to cancel flat seems wrong.
At the very least I would be going back to their complaints dept with this in mind.
You certainly don’t want the potential pain of having to declare this cancellation for another 5 years.
You can’t go to the ombudsman until the Insurer has investigated and in effect closed the complaint but that doesn’t stop you suggesting in your email that’s what you will do if they don’t rethink.
I suspect it’s the former ?
As such that would seem a tad unfair and falls foul of TCF or whatever it’s called these days.
If a claim was put in and then withdrawn it would still of course be on record with a presumably zero quantum marked against it and yes yin should have declared it but with the full story.
If you didn’t declare it at all when taking out the new policy I can see why they might want to arguably re- underwrite the risk and potentially charge you a higher premium but to cancel flat seems wrong.
At the very least I would be going back to their complaints dept with this in mind.
You certainly don’t want the potential pain of having to declare this cancellation for another 5 years.
You can’t go to the ombudsman until the Insurer has investigated and in effect closed the complaint but that doesn’t stop you suggesting in your email that’s what you will do if they don’t rethink.
I was totally ignorant of needing to inform them about a claim that wasn’t, no forms were filled in, no email communication etc. I think it’s unreasonable for them to have this on record, no money was lost by them. I actually sorted some damage myself, so as not to have a claim against me.
Yes, it was a renewed policy, a policy that had already ran for a year after said claim.
They accepted the fact, but my broker said it took me beyond the underwriters own boundaries as far as incidents go.
But, here’s a thing, if this record of your claims is available to insurers, why don’t they just check it themselves BEFORE quoting???
Yes, it was a renewed policy, a policy that had already ran for a year after said claim.
They accepted the fact, but my broker said it took me beyond the underwriters own boundaries as far as incidents go.
But, here’s a thing, if this record of your claims is available to insurers, why don’t they just check it themselves BEFORE quoting???
Legacywr said:
I was totally ignorant of needing to inform them about a claim that wasn t, no forms were filled in, no email communication etc. I think it s unreasonable for them to have this on record, no money was lost by them. I actually sorted some damage myself, so as not to have a claim against me.
Yes, it was a renewed policy, a policy that had already ran for a year after said claim.
They accepted the fact, but my broker said it took me beyond the underwriters own boundaries as far as incidents go.
But, here s a thing, if this record of your claims is available to insurers, why don t they just check it themselves BEFORE quoting???
Clearly they didn’t but picking up on your broker comment - why didn’t he pass on the relevant information to them ?Yes, it was a renewed policy, a policy that had already ran for a year after said claim.
They accepted the fact, but my broker said it took me beyond the underwriters own boundaries as far as incidents go.
But, here s a thing, if this record of your claims is available to insurers, why don t they just check it themselves BEFORE quoting???
Ignorance isn’t a defence from you in the first place on matters Insurance so I assume you also didn’t mention to him ?
However even a cancelled claim makes you a worse risk in Insurers eyes as clearly had the car not been found etc.
In any case it would be the Insurers actuarial data that would then dictate the correct premium.
I would be as I said be fighting their cancellation but equally with the knowledge that you have a broker so should he !
Legacywr said:
The words you re asked when applying for insurance, have you had any accidents of claims in the last 5 years?
I truly didn t think this was a claim, and I think most members of the public would think the same?
I get that but doesn’t mean Insurers see it quite the same way. I truly didn t think this was a claim, and I think most members of the public would think the same?
Often Insurers also ask have there been any changes in circumstances or anything that may affect our assessment of the risk.
Saying no isn’t a defence when or if it becomes apparent something has changed.
If in doubt best to just mention anything and that way no reason for issue down the line.
At the end of the day your car was stolen albeit very temporarily and that can affect data.
A decent broker should be able to argue this so maybe you need a different broker !
Did you also ask AI what do to in the event that claim is withdrawn or “ closed “ with zero payment ?
I’ve just asked my wife who said she would agree with you that most people probably wouldn’t report it but she in the interest of being totally honest and transparent would have mentioned it.
Irrespective I still maintain you need to go back to their complaints dept.
I’ve just asked my wife who said she would agree with you that most people probably wouldn’t report it but she in the interest of being totally honest and transparent would have mentioned it.
Irrespective I still maintain you need to go back to their complaints dept.
alscar said:
Did you also ask AI what do to in the event that claim is withdrawn or closed with zero payment ?
I ve just asked my wife who said she would agree with you that most people probably wouldn t report it but she in the interest of being totally honest and transparent would have mentioned it.
Irrespective I still maintain you need to go back to their complaints dept.
I didn’t, I was explaining why I didn’t consider I’d made a claim, i was being completely honest with them. I ve just asked my wife who said she would agree with you that most people probably wouldn t report it but she in the interest of being totally honest and transparent would have mentioned it.
Irrespective I still maintain you need to go back to their complaints dept.
Legacywr said:
alscar said:
Did you also ask AI what do to in the event that claim is withdrawn or closed with zero payment ?
I ve just asked my wife who said she would agree with you that most people probably wouldn t report it but she in the interest of being totally honest and transparent would have mentioned it.
Irrespective I still maintain you need to go back to their complaints dept.
I didn t, I was explaining why I didn t consider I d made a claim, i was being completely honest with them. I ve just asked my wife who said she would agree with you that most people probably wouldn t report it but she in the interest of being totally honest and transparent would have mentioned it.
Irrespective I still maintain you need to go back to their complaints dept.
Before you say it I know that most wouldn’t consider it material but again declare everything and then let the insurer decide.
But perhaps consider using this in your complaints email.
I think you’ve a very good chance of getting the cancellation rescinded or at worst paying a small adjustment to the original premium.
Legacywr said:
'....... I reported it to my insurers, but later that same day we recovered the car, and I withdrew the claim .........
Legacywr said:
.......I didn't consider I'd made a claim, .......
So which is it? It sounds like you did make a claim but then withdrew it. I fully sympathise with where you are coming from and that you genuinely didn't know you had to declare it.
I am sure this catches out loads of people every year.
Unfortunately, as already pointed out, the insurance companies don't look at life the same way. They want to know about every 'incident', however tiny or however relevant. This may or may not increase your premiums, but not declaring it in the future can lead to a whole lot of problems.
I appreciate this won't help the OP, but hopefully anyone else reading this thread will not make the same mistake, however innocently it may be.
Legacywr said:
I was totally ignorant of needing to inform them about a claim that wasn t, no forms were filled in, no email communication etc. I think it s unreasonable for them to have this on record, no money was lost by them. I actually sorted some damage myself, so as not to have a claim against me.
Yes, it was a renewed policy, a policy that had already ran for a year after said claim.
They accepted the fact, but my broker said it took me beyond the underwriters own boundaries as far as incidents go.
But, here s a thing, if this record of your claims is available to insurers, why don t they just check it themselves BEFORE quoting???
Because they want to trap you.Yes, it was a renewed policy, a policy that had already ran for a year after said claim.
They accepted the fact, but my broker said it took me beyond the underwriters own boundaries as far as incidents go.
But, here s a thing, if this record of your claims is available to insurers, why don t they just check it themselves BEFORE quoting???
Just to add, I informed my Mustang insurer today, they originally wanted to charge a further £400, I asked to speak to a supervisor, explained the situation, which was relayed to the underwriter, who decided to just make a note of it.
As far as was it a claim? I regard I claimed nothing from them.
As far as was it a claim? I regard I claimed nothing from them.
kestral said:
Because they want to trap you.
Where's the advantage for them. If they've cancelled due to non disclosure they will be refunding the premium paid in full, as cancellation will be from inception. So they've taken on the risk, don't all the stuff they need to do when issuing a policy, informed MID, cancelled the policy, done all the stuff they need to do, taken it off MID, all for no return. Hardly seems like something they set out to do. SS2. said:
In this one, the policyholder's premium increased four fold as a result of the 'non-claim' and a complaint was made to the Ombudsman.
The Ombudsman rejected the claim stating that the insurer had done nothing wrong.
In that case I would demand that the insurance company give me a replacement car. They shouldn't have their cake and eat it - ie be allowed to charge 4x with no payout.The Ombudsman rejected the claim stating that the insurer had done nothing wrong.
Another example of the "heads we win, tails you lose" approach the insurance industry takes to customers.
I recall using this phrase a number of times on here about insurance companies applying "different" interpretation to every day words ( i think the last one was that £100k towbar claim being initially refused)
Yes, the 87 page form you get the option of looking g at might have something explaining their particular view that the word claim includes anything they might want it to in paragraph 613.
But given this issue is serious enough to have your policy cancelled, I think the words used in the summary quote should be clear: and not subject to ambiguous meanings.
In this example: the question about claims against your policy in 5 years clearly means to any normal person "have you claimed from your insurance company to get a loss covered"
If the insurance industry actually want to know: "have you made a claim against your policy, including claims that were withdrawn and resulted in no loss?"
then it should be stated so in the main part of the policy information question.
The act of claiming is about getting a resolution, and withdrawing a claim is clearly an action to remove the claim, and not actually have effect. I would have dismissed it as a non event, and so would my wife.
I guess the op now has to wait for the absolutely glacial progress of insurance companies to go through the motions, before you can approach the ombudsman -and that is assuming you get the contact centre bod using the braincell that day.
I do also agree with the poster about why can't insurance companies share data better - they seem to be well behind other sectors, despite having a legalised monopoly of business every year.
I recall using this phrase a number of times on here about insurance companies applying "different" interpretation to every day words ( i think the last one was that £100k towbar claim being initially refused)
Yes, the 87 page form you get the option of looking g at might have something explaining their particular view that the word claim includes anything they might want it to in paragraph 613.
But given this issue is serious enough to have your policy cancelled, I think the words used in the summary quote should be clear: and not subject to ambiguous meanings.
In this example: the question about claims against your policy in 5 years clearly means to any normal person "have you claimed from your insurance company to get a loss covered"
If the insurance industry actually want to know: "have you made a claim against your policy, including claims that were withdrawn and resulted in no loss?"
then it should be stated so in the main part of the policy information question.
The act of claiming is about getting a resolution, and withdrawing a claim is clearly an action to remove the claim, and not actually have effect. I would have dismissed it as a non event, and so would my wife.
I guess the op now has to wait for the absolutely glacial progress of insurance companies to go through the motions, before you can approach the ombudsman -and that is assuming you get the contact centre bod using the braincell that day.
I do also agree with the poster about why can't insurance companies share data better - they seem to be well behind other sectors, despite having a legalised monopoly of business every year.
Simpo Two said:
SS2. said:
In this one, the policyholder's premium increased four fold as a result of the 'non-claim' and a complaint was made to the Ombudsman.
The Ombudsman rejected the claim stating that the insurer had done nothing wrong.
In that case I would demand that the insurance company give me a replacement car. They shouldn't have their cake and eat it - ie be allowed to charge 4x with no payout.The Ombudsman rejected the claim stating that the insurer had done nothing wrong.
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