Insurance company refuse full refund. Breach of DSR's?

[Loafmanuk]

Hi all, it's been a while since I last posted here, but have a bit of a question that I hope someone may be able to help with.

 

My girlfriend has recently renewed her car insurance, although her existing insurance does not lapse until the 1st of Feb (a few days a way yet). The insurance she has just payed for is not due to become active until the old insurance lapses. Basically she has paid for her renewal early.

 

Unfortunately her car has developed a major fault, so she now wants to cancel the policy before it actually begins.

 

She had phoned her insurance company on the 25th and dealt with someone on the phone who took payment on her debit card.

 

She has since phoned to cancel and has been told that she will not get a full refund. They want to charge a fee for legal cover, a fee for making a change to the policy etc etc.

 

I suggested to her that she politely end the call and to say she would look into it and get back in touch with them, which she then did.

 

I was of the understanding that under Distance Selling Regulations, any purchase made on the internet or over the phone that was not a "custom" order must be refunded in full within a 14 cooling off period. I would understand if the policy had already come into force, but it hasn't.

 

Does anyone have any views, experience or advice surrounding such an issue?

 

Many thanks in advance, Loaf..

Edited January 27, 2016 by Loafmanuk
typo's

[liverpoolluke]

not 100% sure an insurance company is held with DSR as it's a service not a good, you will be getting a full refund minus the broker's fees and any extra's you agreed to purchase at the time, all of the above would have been clearly stated to the policy holder at the point of payment

[unclebulgaria67]

Hi all, it's been a while since I last posted here, but have a bit of a question that I hope someone may be able to help with.

 

My girlfriend has recently renewed her car insurance, although her existing insurance does not lapse until the 1st of Feb (a few days a way yet). The insurance she has just payed for is not due to become active until the old insurance lapses. Basically she has paid for her renewal early.

 

Unfortunately her car has developed a major fault, so she now wants to cancel the policy before it actually begins.

 

She had phoned her insurance company on the 25th and dealt with someone on the phone who took payment on her debit card.

 

She has since phoned to cancel and has been told that she will not get a full refund. They want to charge a fee for legal cover, a fee for making a change to the policy etc etc.

 

I suggested to her that she politely end the call and to say she would look into it and get back in touch with them, which she then did.

 

I was of the understanding that under Distance Selling Regulations, any purchase made on the internet or over the phone that was not a "custom" order must be refunded in full within a 14 cooling off period. I would understand if the policy had already come into force, but it hasn't.

 

Does anyone have any views, experience or advice surrounding such an issue?

 

Many thanks in advance, Loaf..

 

They can charge an admin fee to cover cost of cancellation per the policy contract she has, but cannot charge for cover that has not started.

 

Suggest a complaint that she is being treated unfairly and will take it to the FOS if necessary. They should not really charge fees amounting to more than the costs they incurred and would have to justify themselves.

 

She could ask her bank to do a charge back and see whether they will or not. But as she authorised the original debit card payment, they might not.

[BankFodder]

The situation is now dealt with by the Consumer Contracts Regulations http://www.legislation.gov.uk/uksi/2013/3134/contents/made

 

Unfortunately, if you look at section 6 of the regulations you will find the insurance contracts are excluded.

 

I have to say that I was surprised to find this but it seems that the insurers may be correct and that she does not have the right to cancel.

 

I have to say that I find this extremely unfair but as it is laid down in the statute, I doubt whether there is much that can be done about it. The best you might be able to do is to ask them to suspend the commencement of the insurance – for which I suppose they will want some administration fee.

 

What is the name of the insurer? Maybe you can let us know what happens.

[unclebulgaria67]

The situation is now dealt with by the Consumer Contracts Regulations http://www.legislation.gov.uk/uksi/2013/3134/contents/made

 

Unfortunately, if you look at section 6 of the regulations you will find the insurance contracts are excluded.

 

I have to say that I was surprised to find this but it seems that the insurers may be correct and that she does not have the right to cancel.

 

I have to say that I find this extremely unfair but as it is laid down in the statute, I doubt whether there is much that can be done about it. The best you might be able to do is to ask them to suspend the commencement of the insurance – for which I suppose they will want some administration fee.

 

What is the name of the insurer? Maybe you can let us know what happens.

 

From what i can remember, when this legislation was being consulted on, they considered that Insurers already had ICOBS which addresses this a bit and also there was some concern about people who only needed short term Insurances using cooling off periods for free Insurance. Plus obviously once Insurance starts, you could have a third party liability created which the Insurers only find out about at a later date.

[Loafmanuk]

Hi guys, thanks ever so much for the replies.

 

She rang again and got through to a different operator, thinking she would be paying a cancellation fee of some sort, but this different operator said as the policy hadn't started yet they would give her a full refund!

 

So it would seem it depends on who you speak to..

 

Thanks again guys! All the best.