Policy Shop cancelled my home insurance!

[paulfoel]

Came back from holidays last night to find my home insurance that I set up from 1st April has been cancelled from monday!

And I get to pay £45 admin fees for the privilege.....

 

Absoultely livid.

 

 

Reason given - Risk unacceptable due to undisclosed claims.

I put them all on the quote but it appears its been missed off the policy documents they sent out when I was away.

But I definitely put my claim on there (as well as 4 yrs buildings no claims and 1 yrs contents no claims - why else would I do that?).

 

And you guess it can't get hold of them today. Engaged permanently.

 

Cheers Policy Shop for this.

I guess now whenever I get insurance I will need to answer yes for had insurance ever been cancelled?

I'm betting its now a higher risk for me.....

 

Really mad....

[BankFodder]

If you don't have a copy of the form you filled in, start off by sending them an SAR.

If that produces the form then we can help you.

[paulfoel]

I'll do that - it was via quidco so Im wondering if something happened somewhere along the line.

 

Im doubting myself now though - if for some reason I did accidentally miss it out surely they should give me the chance to sort it out rather than just cancel. Like I said, it seems a big thing to have a cancelled insurance on record.

[unclebulgaria67]

I'll do that - it was via quidco so Im wondering if something happened somewhere along the line.

 

Im doubting myself now though - if for some reason I did accidentally miss it out surely they should give me the chance to sort it out rather than just cancel. Like I said, it seems a big thing to have a cancelled insurance on record.

 

I wonder whether you can retrieve from your computer what information you sent them. I am not familiar with Quidco, but if they are the same as other comparison sites, once you click to accept a quote you are diverted to the Insurers site to complete the purchase. At this point you should check all of the information, before submitting your payment to take up the policy.

 

Do you know whether Quidco have information on their systems about what claims details you completed ? Did you get the original quote on Quidcos system or on the Insurers system ?

 

If you have completed claim information which has then gone missing within the comparison site or Insurers site, this is not the first time I have heard of this. I have read countless comments on forums, saying exactly the same has happened to other people. There does appear to be problem with comparison sites not passing on information.

 

You need to get this resolved with Quidco/policy shop, as although there is no marker added to a central database re the cancellation, if you mentioned it to other companies, they might not Insure you or want to charge a lot more.

 

My advice, which I have said before on here. If you have had any claims within the period asked about (5 years normally) , DO NOT arrange cover online. Instead you should contact an Insurance brokers or Insurers by phone, so you can run through all of the details.

[dacouc]

I wonder whether you can retrieve from your computer what information you sent them. I am not familiar with Quidco, but if they are the same as other comparison sites, once you click to accept a quote you are diverted to the Insurers site to complete the purchase. At this point you should check all of the information, before submitting your payment to take up the policy.

 

Do you know whether Quidco have information on their systems about what claims details you completed ? Did you get the original quote on Quidcos system or on the Insurers system ?

 

If you have completed claim information which has then gone missing within the comparison site or Insurers site, this is not the first time I have heard of this. I have read countless comments on forums, saying exactly the same has happened to other people. There does appear to be problem with comparison sites not passing on information.

 

You need to get this resolved with Quidco/policy shop, as although there is no marker added to a central database re the cancellation, if you mentioned it to other companies, they might not Insure you or want to charge a lot more.

 

My advice, which I have said before on here. If you have had any claims within the period asked about (5 years normally) , DO NOT arrange cover online. Instead you should contact an Insurance brokers or Insurers by phone, so you can run through all of the details.

 

The cancellation will be noted on a central system used by most but not all Insurers.

[unclebulgaria67]

The cancellation will be noted on a central system used by most but not all Insurers.

 

Which database ?

[dacouc]

Clue

[unclebulgaria67]

Clue

 

That is for claims made

[dacouc]

That is for claims made

 

Claims and UNDERWRITING exchange

[unclebulgaria67]

Claims and UNDERWRITING exchange

 

Only aware of claims information being passed to them.

[dacouc]

It records data such as

 

Name, d.o.b, address, vehicle details and claims details.

 

It also records policy details eg cover as well as inception and end dates which gives an indication to an Insurer checking it the policy was cancelled.

 

The central database most (Subscribing) Insurer check and record void and cancelled policies is Insurance Hunter

[Mwynci]

I've always assumed there is no database for void or cancelled policies as well. It's a new one on me.

[unclebulgaria67]

I've always assumed there is no database for void or cancelled policies as well. It's a new one on me.

 

According to CUE, it is for claims only. I have only known them to take claims information.

 

If you have never had any claims, you won't have a record with CUE.

 

It is all transferred from the claims pages on the Insurers systems. It is just the basic details of name, dob, address, policynumber, insurers, date of claim, amount paid. If people have changed name i.e got married, it does not always pick them up.

 

Because this is a hot topic on internet forums, there are some who will say that Insurers have ways of recording other data centrally. But to my knowledge this is not something that is up and running. Insurance is a small world though and people should declare all information, otherwise they are taking a risk.

 

Insurance Hunter is an Experian fraud detection service, but it looks for muliple policies, claims by the same person or same address.

[paulfoel]

I wonder whether you can retrieve from your computer what information you sent them. I am not familiar with Quidco, but if they are the same as other comparison sites, once you click to accept a quote you are diverted to the Insurers site to complete the purchase. At this point you should check all of the information, before submitting your payment to take up the policy.

 

Do you know whether Quidco have information on their systems about what claims details you completed ? Did you get the original quote on Quidcos system or on the Insurers system ?

 

If you have completed claim information which has then gone missing within the comparison site or Insurers site, this is not the first time I have heard of this. I have read countless comments on forums, saying exactly the same has happened to other people. There does appear to be problem with comparison sites not passing on information.

 

You need to get this resolved with Quidco/policy shop, as although there is no marker added to a central database re the cancellation, if you mentioned it to other companies, they might not Insure you or want to charge a lot more.

 

My advice, which I have said before on here. If you have had any claims within the period asked about (5 years normally) , DO NOT arrange cover online. Instead you should contact an Insurance brokers or Insurers by phone, so you can run through all of the details.

 

Its all ok on quidcos system but of course that proves nothing. They sent the policy out the day before and it was missing off there.

 

Of course, if I'd seen it I would have phoned them of course but I was on holidays. Day later they sent the cancellation. Assuming they checked the database, found the claim missing and cancelled.

 

Very harsh IMHO to not even phone me and try to solve the problem. Getting an insurance cancellation is a biggie and surely the insurance companies have some duty not to behave like this?

[unclebulgaria67]

Its all ok on quidcos system but of course that proves nothing. They sent the policy out the day before and it was missing off there.

 

Of course, if I'd seen it I would have phoned them of course but I was on holidays. Day later they sent the cancellation. Assuming they checked the database, found the claim missing and cancelled.

 

Very harsh IMHO to not even phone me and try to solve the problem. Getting an insurance cancellation is a biggie and surely the insurance companies have some duty not to behave like this?

 

You can get this resolved. Quidco are regulated by FCA, same as Insurers and other comparison sites. Check at the bottom of the Quidco site re regulation.

 

Quidco & the Insurers would be jointly responsible for the error that has occured, in the same way as if a brokers and Insurers were working with you to issue the policy. If you entered the claims information into the Quidco system, the premium should have been calculated taking it into account. Also on transferring to the Insurers site to pay for the policy, all of the information you completed should have been transferred across.

 

You need to register a complaint with Quidco and the Policy shop saying that you did enter the claims information at the time of getting the quote. You relied on the Quidco system transferring the information that the quote was based on and do not feel responsible for the error that has occured.

 

The Insurers do behave like this with internet sales. They sell about 70% of their policies online and it becomes purely an admin process. They would normally provide 7 days notice of cancellation in writing.

[paulfoel]

Hmm. Just spoke to Policy Shop.

 

They swear blind that I did not add the claims onto the form but, of course, I cant really prove it now.

 

They are saying that the insurer voided it because this particular insurer will not insure anyone with any claims in the last 5 years. So there is no way to go forward with this insurer.

 

They have offered to find an alternative but I am still concerned about this cancellation. They are saying it was voided but the letter still says "Risk is unnacceptable - policy will be cancelled".

 

I've tried saying to them that, no matter who is right, they have acted unfairly in cancelling without giving me the chance to sort it out and that the cancellation will now cause me lots of grief.

 

I've escalated it as an official complaint now. Hoping ombudsman sees it my way too.

[unclebulgaria67]

Thought you said it was all OK on Quidco system. If the claims info is on Quidco system, then make a complaint to Quidco and tell them what has happened. They should try to come up with a resolution for you.

[paulfoel]

Ah - it looks like I did make a mistake.

 

Even though I put the correct no claims, I put number of claims but not the actual details. My fault it looks like.

Thing is though I still think they should have contacted me to try and put it right.

 

Sending me a cancellation for making a mistake has got a big implication now. Bit unfair IMHO.

[unclebulgaria67]

Ah - it looks like I did make a mistake.

 

Even though I put the correct no claims, I put number of claims but not the actual details. My fault it looks like.

Thing is though I still think they should have contacted me to try and put it right.

 

Sending me a cancellation for making a mistake has got a big implication now. Bit unfair IMHO.

 

Try to get a letter from Policy shop explaining what has happened. Then you gave some information which was correct, but missed off some of the claim discounts, so they had to cancel the policy.

 

You should not have a problem getting a competitive quote through a local brokers. Mention the mishap with Policy Shop and give them all the correct details.

 

I repeat DO NOT USE INTERNET, if you have claims to disclose. There are too many problems caused. Insurers don't check the CUE database until after you have bought the policy and then sometimes they cancel or ask for increased premiums.

[paulfoel]

Try to get a letter from Policy shop explaining what has happened. Then you gave some information which was correct, but missed off some of the claim discounts, so they had to cancel the policy.

 

You should not have a problem getting a competitive quote through a local brokers. Mention the mishap with Policy Shop and give them all the correct details.

 

I repeat DO NOT USE INTERNET, if you have claims to disclose. There are too many problems caused. Insurers don't check the CUE database until after you have bought the policy and then sometimes they cancel or ask for increased premiums.

 

Thanks. Yes that seems to be the gist of it.

I can see what you mean about using the internet. As you say, the insurers seem to crack on then do this.

 

IMHO they should at least be forced to give some leeway in things like this. I dont know - maybe give the insured chance to correct any mistakes within 7 days once notified rather than just cancel like they do.

[unclebulgaria67]

Thanks. Yes that seems to be the gist of it.

I can see what you mean about using the internet. As you say, the insurers seem to crack on then do this.

 

IMHO they should at least be forced to give some leeway in things like this. I dont know - maybe give the insured chance to correct any mistakes within 7 days once notified rather than just cancel like they do.

 

I think this is a problem area for Insurers. I think the regulator the FCA should look into it, to make sure consumers are protected.

 

What if you were away on holiday shortly after arranging a policy. While you are away something happens and you have no Insurance, because of a mistake.

 

I think the Insurers should be required to implement the CUE claims check at quotation stage and if the details are not accurate, then you cannot buy a policy until you have given accurate details. Perhaps the CUE database information should be available to consumers within say 24 hour, so they have the details to use.

 

There needs to be some work done on this. It has not been done so far, because Insurers had a problem in gaining real time access to the CUE database through their online quotation systems. So they had to check policies after they had been bought or when a claim is made later.

[paulfoel]

I think this is a problem area for Insurers. I think the regulator the FCA should look into it, to make sure consumers are protected.

 

What if you were away on holiday shortly after arranging a policy. While you are away something happens and you have no Insurance, because of a mistake.

 

I think the Insurers should be required to implement the CUE claims check at quotation stage and if the details are not accurate, then you cannot buy a policy until you have given accurate details. Perhaps the CUE database information should be available to consumers within say 24 hour, so they have the details to use.

 

There needs to be some work done on this. It has not been done so far, because Insurers had a problem in gaining real time access to the CUE database through their online quotation systems. So they had to check policies after they had been bought or when a claim is made later.

 

Agreed. This is what happened to me.

Insurance was from 1st April - I went away on the 4th. Policy documents appear to have landed on the monday and the cancellation notice on the wednesday.

 

I came back last friday night and saw this. Policy was due to cancel today so at least I've got two days but if I'd been away for two weeks then it would have been a problem.

 

One problem is it seems the insurers are not obliged to make any effort. Like you said, they check afterwards, any discrepancies they cancel no questions asked.

 

In this case, I do intend to pursue via FOS if needs be because I still dont think its fair treatment and I dont deserve to have this on my record.

[Mwynci]

I admire your honesty in admitting you didn't disclose.

 

Please note I'm not stating any of this was deliberate by you.

 

but........

 

I'm not with you about your complaint, you messed up. A contract was formed on the principal of utmost good faith, they asked the questions, you answered (incorrectly) and a contract was formed based on what you said, You can't now blame them (the underwriter would have done this, not Policyshop) for finding out the facts were different to as stated and sayng they would not have offered cover had they known the correct facts.

 

The argument would be different if you didn't have the claims history, or you did disclose, but that's not the case.

[paulfoel]

UPDATE. Policy shop to be fair to them have sorted it. Charged me only for days on cover and allowed me to cancel rather than them.

 

I checked the FOS and it seems they take a dim view of insurance companies not being tolerant of innocent errors. IMHO it is a bit much to throw out a cancellation without giving the policyholder time to rectify at least.

 

But I can see what unclebulgaria says - it appears to be standard practice. Very poor. I've now sorted out alternative cover via a broker.

[paulfoel]

I admire your honesty in admitting you didn't disclose.

 

Please note I'm not stating any of this was deliberate by you.

 

but........

 

I'm not with you about your complaint, you messed up. A contract was formed on the principal of utmost good faith, they asked the questions, you answered (incorrectly) and a contract was formed based on what you said, You can't now blame them (the underwriter would have done this, not Policyshop) for finding out the facts were different to as stated and sayng they would not have offered cover had they known the correct facts.

 

The argument would be different if you didn't have the claims history, or you did disclose, but that's not the case.

 

I agree it was my fault it seems totally. I can totally understand that they based the insurance on my answers and its my mess to sort out. If it costs me an admin fee then fair enough.

 

What I disagree with is the way that cancellations are thrown out in cases like this. Why not contact me and say, we think you made a mistake, please contact us to sort this out asap or we'll have to cancel. Like I said, policy turned up one day, cancellation the next.

 

Having an insurance cancellation on record is a BIG deal. Get arrested for drink driving and its off your record in time, get an insurance cancellation because you made a mistake on the form and its with you forever. I did a quick check and re-quote with a cancellation on record. £80 a year extra for house insurance, £200 for car insurance. Over 10 years thats almost £3000 in extra insurance costs because of my mistake.

 

My issue is that the the consequences are not proportional. After doing some research, I've heard of people who have had letters saying sorry cancelled because you've had two claims this year, one person even had a letter saying sorry cancelled reason=other. Its not on.

 

I looked at FOS and I suspect they agree with me. Gone are the days where insurance companies get to turn down life insurance claims because you forgot to tell you went to the GP about a cough 10 years ago. The FOS take the view that where an innocent accidental mistake has been made then the insurance companies need to be proportional in their view on this.

 

IMHO, putting a marker on record which will cost you £1000s in extra costs for the rest of your life because of an oversight is not proportional.