Policy cancellation after claim against 3rd party

Wrigsby1 · Nov 28, 2015

Hi all

An interesting development that is also a bit annoying re having my policy potentially cancelled post accident...

At the start of October I am taken out by a myopic old codger who right turned across the road in front of me turning into a side road... Speed low at point of impact, injuries slight, a clear case against him...

My ins co advise me to deal direct as it is so clear cut... This I do and all is good... 3rd party ins co are fine to deal with and all is sorting/sorted... The RT is a fine line write off... Damage is low but all to the fiddly front end so being too complicated to easily fix... I decline the good payment for damage and have it declared a write off with value being very acceptable...

Today I speak to my ins co regarding a new bike to add to the policy... On mentioning the claim and the write off they say that this means immediate cancellation of policy... I counter that I thought this was the case only if they were being claimed against... They say not necessarily...!

Seems odd that nobody mentioned this before or even if this advice/judgement is right... My ins co have not been involved in the claim except from the 1st phone call and the advice to deal direct with the 3rd party ins co...

So I can claim for outstanding policy of 5 months from the 3rd party co and start again but it all seems a bit arbitrary... At no point am I to blame or liable for anything to do with the accident but I have to go through the hassle of restarting the policy with someone...!

Luckily I have a rare day off on Monday so will ring around a few co's... I expected the accident to make a possible small difference but don't want to get royally screwed for someone else's f' up... Luckily I saw and stopped before the twat of a Transit tipper driver nearly broadsided me and my 11GS on a roundabout a few weeks later before I needed another ins claim... And that one would have hurt!!!

JJH · Nov 28, 2015

Something dosnt sound right here. They just can't cancel a policy under those circumstances. Surely not. If you have to go to another company you must tell them and it will make getting a quote interesting. Is there some misunderstanding between you? Let us know how you get on. JJH

cookie · Nov 28, 2015

i thought cancellation was normal after a total loss?

Wrigsby1 · Nov 28, 2015

cookie said:
i thought cancellation was normal after a total loss?

Yip, its a total loss but nothing to do with my ins co... It's the 3rd party ins co that are liable in total and have been very helpful and sympathetic to my claim (I haven't claimed loss of earnings or £5 mill for a long standing injury...

). I thought cancellation was only after the bike was total loss-ed through your own policy... Confusing and annoying...!

david a hall · Nov 28, 2015

They should return the balance.... Everything else is uninsured losses and 3rd party is liable.

Norfolk Tiger · Nov 28, 2015

The policy you take out is on the bike,which has now been written off so there is no longer a bike to insure hence the policy being cancelled would be my take on it,which could be completely wrong

Joca · Nov 28, 2015

I think Norfolk Tiger is right. Seems logical. I presume you don't have a multi bike policy. That'd be different.

JJH · Nov 28, 2015

Norfolk Tiger said:
The policy you take out is on the bike,which has now been written off so there is no longer a bike to insure hence the policy being cancelled would be my take on it,which could be completely wrong

So there not pissed off with him? All he has to do is take out a new policy with no penalty on his new bike. Not to bad so. JJH

Wrigsby1 · Nov 28, 2015

Multi bike policy... I have been riding around on the other bike and asked whether I was inadvertently uninsured at any point to which they replied it will be cancelled now its been reported and I wasn't... Sounds like shite and I am going to chase it again Monday morn when I also chase a new policy quote they have said they will provide... It just sounds shite and if I was claiming on my own policy I could understand it as that is what it says in the small print which I have read previously...

We shall see...

Wrigsby1 · Nov 28, 2015

PS There was no suggestion of policy reimbursement of which there is 5 months still to run... Only the suggestion that it is claimable with the 3rd party insurers...

frog-n-flymo · Nov 28, 2015

I would have thought that if the policy was cancelled due to no insurable interest, then the premium associated with the cancelled term is refundable. Seeing as there was no claim relating to the cancellation they cannot imply that the premium relating to the outstanding term has been taken into account with any settlement.

I'd ask them for a quote to go with your letter to the ombudsman and your postings to social media, in the interests of fairness, of course.

Deleted account 181015003 · Nov 28, 2015

I have heard of the policy been canceled after the insurer pays out for a total loss but not for what is effectively a change of vehicle I think the insurance rep has made a error I would seek clarification and take it further if they don't refund the balance if the insist on canceling your policy.

Wrigsby1 · Nov 28, 2015

frog-n-flymo said:
I would have thought that if the policy was cancelled due to no insurance interest, then the premium associated with the cancelled term is refundable. Seeing as there was no claim relating to the cancellation they cannot imply that the premium relating to the outstanding term has been taken into account with any settlement.

I'd ask them for a quote to go with your letter to the ombudsman and your postings to social media, in the interests of fairness, of course.

Something like that...

I will want clarification and then perhaps a question to the ombudsman if it stays fishy... Don't laugh at the back... But UKGSer is about a "social media" as I get...

Anonymity is a very underrated pastime...

Wrigsby1 · Nov 28, 2015

Deleted account 181015003 said:
I have heard of the policy been canceled after the insurer pays out for a total loss but not for what is effectively a change of vehicle I think the insurance rep has made a error I would seek clarification and take it further if they don't refund the balance if the insist on canceling your policy.

That was my point of contention when I spoke to them... I wonder if I have a clusterf..k of ignorance and a case of the usual "the big words win" type of reading the terms... I will try to speak to a grown up Monday morning...

Deleted account 181015003 · Nov 28, 2015

Norfolk Tiger said:
The policy you take out is on the bike,which has now been written off so there is no longer a bike to insure hence the policy being cancelled would be my take on it,which could be completely wrong

The bike still exists even if its a bit bent now all the OP has done is sold his interest in the bike to to a third party the other drivers insurance company is this any different to the OP selling his bike to a dealer in a PX for a new bike or to anyone else in a private sale ?

Deleted account 181015003 · Nov 28, 2015

Wrigsby1 said:
That was my point of contention when I spoke to them... I wonder if I have a clusterf..k of ignorance and a case of the usual "the big words win" type of reading the terms... I will try to speak to a grown up Monday morning...

How I though it worked is the insurer insures the bike and the value of the bike is for example market value £10k the bike is written off by the policyholder the policyholder claims on the policy and the insurer pays out the market value £10k by doing this the issuer has fulfilled their part of the contract and it is now closed.

Has your insurance company paid out if not they have not fulfilled their part of the contract and should refund the balance

Wrigsby1 · Nov 28, 2015

Deleted account 181015003 said:
How I though it worked is the insurer insures the bike and the value of the bike is for example market value £10k the bike is written off by the policyholder the policyholder claims on the policy and the insurer pays out the market value £10k by doing this the issuer has fulfilled their part of the contract and it is now closed.

Has your insurance company paid out if not they have not fulfilled their part of the contract and should refund the balance

My insurance co has done very little apart from direct me in the 1st instance to deal directly with the 3rd party insurer who has settled in full for a total loss on the bike... My ins co were the 1st people I called and I have not spoken to them until today for a change of bike... They directed me to deal straight with the 3rd party ins co in order to save time and the NCB reclaim issues...

I have been merrily riding about on one of the other two bikes also listed on the policy! They did issue 3 policy docs and perhaps they divvie up the policy in three somehow??

JJH · Nov 28, 2015

Deleted account 181015003 said:
How I though it worked is the insurer insures the bike and the value of the bike is for example market value £10k the bike is written off by the policyholder the policyholder claims on the policy and the insurer pays out the market value £10k by doing this the issuer has fulfilled their part of the contract and it is now closed.

Has your insurance company paid out if not they have not fulfilled their part of the contract and should refund the balance

There is more than that going on. Policy's are usually for 1 year so they haven't fulfilled that part of the contract especially if you have an open policy. JJH

topcat2006 · Nov 28, 2015

I had a car pull out in front of me in April and write my bike off. Like you I dealt with the 3rd party insurer direct and just notified my insurance company the accident had happened and the route I was taking.

I bought a new bike several weeks after and just changed the policy over. It wasn't cancelled - just the normal £50 admin fee to change a bike on the policy. This was a single bike policy with Motorcyle Direct in Avonmouth.

Tom

Wrigsby1 · Nov 28, 2015

topcat2006 said:
I had a car pull out in front of me in April and write my bike off. Like you I dealt with the 3rd party insurer direct and just notified my insurance company the accident had happened and the route I was taking.

I bought a new bike several weeks after and just changed the policy over. It wasn't cancelled - just the normal £50 admin fee to change a bike on the policy. This was a single bike policy with Motorcyle Direct in Avonmouth.

Tom

Thanks for that... That was what I was expecting... I am going to see if I get more sense Monday morn...

Policy cancellation after claim against 3rd party

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