Additional Charges being incurred for a claim that has been confirmed that no claim was made from either party

[FoxyMutha]

Hi - I am lost and would very much welcome some advice

Upon renewing a recent policy I changed brokers

I submitted all the usual details re claims, no claims discount etc

My new broker came back to me to state that there was a discrepancy. The discrepancy was that there had been an entry logged on the claim database dated 13th April 2015. Since I knew I had not made any claims that had processed I looked into this further.

My previous insurer sent a letter to me, which I forwarded to new broker, to state the following -

 

Dear Miss Price

Further to our recent telephone conversation I can confirm that no claim

was made from either party in relation to the incident detailed on the right

and that the file was closed with your no claims discount allowed.

If you have any queries please do not hesitate to contact us, quoting the claim

reference number on all communications.

 

I also have 5 years no claims discount - which would have been negated should there indeed have been a claim 12 months ago.

My new broker seemed happy. Yet the next week I receive an email and today a letter, stating that my previous insurer wished this "claim" to remain and now I am being asked to stump up the following additional charges with SEVEN days -

£120.73 - Adjustment Premium

£50.00 - Administration fee

 

Please advise where or what I need to go/do next as I have the no claims verified and I also have a letter from the previous broker saying no claim from any party was received?

 

Kind regards

 

Amanda

[BankFodder]

Can you tell us a bit more about this incident?

[FoxyMutha]

Can you tell us a bit more about this incident?

 

Hi

Absolutely thank you for replying

I had mis judged turning onto my drive, i slightly caught the bumper of another of my cars, which was also registered and insured as myself as the named driver/owner etc

I called the insurance for assistance and they started a claim

I looked into the costs of repair for the vehicles and it was sub £200 for both

I subsequently paid for both repairs myself

I also called the insurer back to say I did not want to persue with the claim to repair via the insurance

There had been no services, rental cars - anything, used for by the insurer

I can send a copy of the letter to you if this helps which states no claim by any party was initiated at any cost

KRs

Amanda

[BankFodder]

First of all let's be plain.

 

What I see here is that you own two vehicles and the driving one, you damage the other. You then began to initiate a claim on the basis that you would take advantage of the insurance on one of the vehicles bit later on you did your calculations and you realise that it wasn't economically the best course of action and so you didn't proceed with the claim and you decided to bear the loss yourself.

 

It seems to me that the administration fee is excessive – especially when it is added to the so-called adjustment premium.

 

Because you want the insurance to continue and you have a deadline to meet, I would suggest that you query the administration fee and asked them why it is so much and also explain to them that although it is under protest, you're paying the money they require in order to allow the implementation of the insurance policy to go ahead, but you require answers as to the administration fee and that you propose to challenge it if they cannot justify correctly.

 

At the same time you may as well say that you also consider that the so-called "adjustment premium" is also excessive and you want an explanation of how they reach that figure and that you may well challenge that as well if you are not satisfied by their response.

 

However, I do suggest that you go ahead and pay the sums because otherwise you could be in a position where you are left without insurance and you will then have to deal with future insurance companies having to declare this incident and also the fact that you have been refused insurance – and this will make things very complicated very expensive in future

 

Is this correct?

 

Although you didn't make a claim, insurance premiums are based on an assessment of risk. You have a duty to inform your insurer of all material facts which could possibly affect their view of how risky it is to ensure you. Based on their assessment of the risk they would then calculate an appropriate insurance premium.

 

The fact is that you have declared accident so they are aware that you drove in a way which caused damage to another vehicle and which could potentially have incurred a liability upon them to pay out.

 

This means that because of your misjudgment, they have quite understandably decided that insuring you is slightly riskier than they had imagined.

 

I'm afraid that I don't think you can do anything about that. However, they have also attempted to levy a £50 administration fee on top of something which they have chosen to call "an adjustment premium".

[FoxyMutha]

Thank you for your reply

Although I am very grateful - I also feel a little hurt or maybe I have misread your meaning

Because I have never grazed into a car I own with a car that I also own - I sought advice from my insurer on what to do. Is this not what brokers are for - advice on the policy and cars covered?

Not for one second would I have thought to be taking advantage of my own policies?

I figured that because I did have a number of years no claims - that indeed to lose this discount by taking the advice of my insurer, was the sole basis of making the judgement to the low repair cost of the grazed bumpers, to not proceed with a claim.

 

I will challenge the points you make, huge appreciation for helping.

Edited April 1, 2016 by FoxyMutha

[BankFodder]

In that case I may have misjudged your intentions. However, your big mistake is to imagine that you could turn to your insurer and treat them as your friend and prepared to advise you in your own best interest.

 

A big Fail for that.

 

Insurers are simply moneymaking machines. They have no interest in you for any other reason and you should not have turned to them for advice.

 

That's why you've been a member of this forum since 2011. You should have trusted us first