AXA Cancelled insurance policy

[Timewitch]

Hi

 

I am hoping someone on here can advise me.

We paid AXA commercial insurance for a couple of years for our 1 van business. Also allowed on the policy were our two family cars.

 

In November 2011 - our employee had an accident in our van. The van was very badly damaged and took so long for this to be sorted out with the insurers that our business had to cease trading - which was a very difficult and stressful time for us.

 

Because we had to cease trading AXA cancelled our insurance policy completely even though we were happy to continue paying the premiums for the rest of the year, as both of our family cars needed cover. Axa refused to transfer the policy to a more suitable one instead.

 

At very short notice (2 days) we had to run around finding quotes and obtaining insurance for our family cars.

I called AXA and was assured that there was nothing to pay on the policy as it was cancelled.

Our AXA sales rep also advised us in an email to cancel our direct debit so ensure no more payments would be taken and that the matter was now being dealt with by the office.

 

We heard nothing until yesterday when my husband received a phone call from a collections company chasing for over 2k that AXA wanted to cover the premiums for the rest of the year because a claim was made on the policy.

 

I have looked through my policy documents and the small print and no where does it state that if the insurer cancel the policy then the full payment will need to be made.

It does however say this is the case if we cancel the policy - which we did not.

 

What I find frustrating is that we checked at the time that nothing was owed. No one has contacted us in the meantime. We were happy to continue paying our premiums until the end of the year if they had just provided cover for our 2 private vehicles.

 

Can anyone offer any advise on if they are entitled to the rest of the policy payments considering they cancelled the policy?

 

Thanks in advance.

TW

[raydetinu]

If they paid out on a claim, then you have used that policy. ( I pressume it was an annual ploicy and you paid monthly for it ).

The policy is for the whole year, however as it was them that cancelled the policy and it covered other vehicles, and therefore not at risk of further claims, you should only be liable for the postion attributable to the van insurance.

I suggest you contact them and get a breakdown on that basis.

[unclebulgaria67]

Ok the way to play this one. Make a formal complaint in writing (recorded delivery) to who ever told you that there would not be anything to pay, after they had cancelled the policy. Threaten to involve the FOS, if this cannot be resolved. Ask them to contact the collections company and AXA about this, so that this debt/premium collection activity is put on hold.

 

Let them deal with it and if they don't resolve within 8 weeks, then contact the FOS to further the complaint.

 

I don't think AXA have handled the cancellation and policy arrangements properly. I think it was probably a mistake to bundle up the private car cover, with the Commercial van cover. Also when the cancellation advice was given, they did not give you the correct information. To my knowledge, the rest of the years premium would have been due and they misinformed you. As such, whoever gave you the wrong info, will have to pay the price i.e write off the amount.

[Timewitch]

Thanks ever so much to you both for the advice. I have written a letter and will let you know how it goes.

 

TW