Help!!!!! Insurance Problems

[Derek]

I hope someone can give me some advice before I totally lose the rag and start screaming at someone down the phone.

Back last year I switched my car insurance from Direct Line to Elephant and transferred over my no-claims bonus. I got the quote via the internet but made the payment via my credit card over the phone.

At the time I asked if I needed to do anything to provide proof of my no-claims bonus (3 years). The guy on the other end said I didn't and that it would be handled at his end as they had the details of my previous insurer.

Anyway about a month later I received a letter asking for proof of the no-claims bonus. I photocopied this and sent it off. A week or so later I received another letter which was sent and another copy was sent off.

No further letters were received and I changed my email address due to the volume of spam I was getting.

Anyway my renewal date was today, I wasn't too worried about it as I get the train to work, but I phoned up tonight to see where the renewal forms were only to be told that as I hadn't provided proof of the no claims my policy had been cancelled in October!!

After the initial shock I asked why and was told that they hadn't received the copy of the no claims letter (which I still have the original copy of) and as they couldn't take the additional charge they cancelled the cover.

They said as they were an internet company they emailed me to advise of this but it wasn't their policy to phone customers or send recorded delivery letters to advise of this.

Now by now I was getting a bit annoyed and asked to speak to a supervisor. After 5 minutes I felt like asking to speak to the original girl as this guy was useless.
I'm not sure if the call centre is in India or Cardiff but he seemed to think that driving about with no insurance for 10 months isn't that big a deal.

The final insult was when they said they had refunded some of the charge to my credit card. I don't recall this and have asked for a copy of the statement seeing the online service only goes back 6 months but for 2 1/2 months coverage they only refunded less than 1/2 of the premium with a big chunk taken in a cancellation charge.

By now I was really beginning to lose it. Has anyone else experienced anything like this or have any ideas how is best to tackle it?

I have their email and freepost addresses but wondered if I should copy in any ombudsman or similar with the letter/email.

Right now I'm seeing red and any advice/assistance would be gratefully accepted.

[Rob]

They cancelled your policy, but didn't seek recovery of the insurance certificate, and follow that up by snail mail

You are indeed very fortunate that you haven't needed to claim, or perhaps have been stopped by the police.

[Derek]

Originally Posted by Rob C

They cancelled your policy, but didn't seek recovery of the insurance certificate, and follow that up by snail mail

Yep I have the certificate in front of me and used it to get a tax disc in January. At the very least a phonecall or recorded delivery letter to advise me of the cancellation would be expected.

[AndrewJ]

You are lucky you was not caught. Very lucky now please pick me 6 numbers from 1 to 49

[swoop101]

I would definately make a formal complaint to the finance ombudsman at:
http://www.financial-ombudsman.org.uk/

The insurance company have failed to keep you informed and have left you in danger of prosecution through no fault of your own.

[Janusian]

I would definitely go to town on this. Through the FOS as outlined above. Here are the key reasons why.

1) Notice of cancellation. According to the policy on Elephant's website

Originally Posted by Elephant

We may cancel this policy at any time by sending seven days notice in writing to your last known address.

This was clearly not done. You are right in that it should also have been done by recorded delivery as most other insurers would do.

2) Short period cancellation rates. Apparently these are printed on the back of the insurance cert you have. Check it. In most cases these rates only apply when you elect to cancel the policy. In your case they elected to, so you should get a pro-rata refund. Have a check and let us know what it says.

This lot sound like cowboys. Not sending a recorded delivery letter of cancellation is a very dangerous game.

[Raistlin]

The problem is that Elephant do state quite clearly that they will only contact you by email. In that case it's up to you to ensure that they have the correct contact details for them.

Changing your email address and not telling them is the same as moving house and not telling them. If they haven't got the contact details that they require then that will cause a problem.

I'm not saying that what they did is right, but it is in accordance with their terms which you will have agreed to when you took out the policy, and which should be quoted in the documentation you received with the policy.

[Maggy J]

Originally Posted by Raistlin

The problem is that Elephant do state quite clearly that they will only contact you by email. In that case it's up to you to ensure that they have the correct contact details for them.

Changing your email address and not telling them is the same as moving house and not telling them. If they haven't got the contact details that they require then that will cause a problem.

I'm not saying that what they did is right, but it is in accordance with their terms which you will have agreed to when you took out the policy, and which should be quoted in the documentation you received with the policy.

Hmm! I think they may be in a grey area here.I think it is worth challenging it.At least if you get enough publicity then it will be a lesson to others who use internet insurance companies and it might get Elephant to reconsider and return your money.

However I'm wondering why you didn't check your statements/account from time to time.I do to check the old man isn't putting the account in the red and to make sure that there is nothing outstanding that hasn't been paid.Also after the internet fraud thread thats been running for months here I've been checking to see if I've been stung like so many others.

[andygrif]

Originally Posted by Janusian

I would definitely go to town on this. Through the FOS as outlined above. Here are the key reasons why.

1) Notice of cancellation. According to the policy on Elephant's website

Well spotted. I assume that Dezzo has a copy of the original T&Cs that he was sent by them. If they didn't do this I think there is definitly reason to make a formal complaint to the ombudsman.

However, it does stil highlight potential oversights on Dezzo's behalf, notably not informing Elephant of his change of email address, even though he knew that this was their preferred method of communication.

Hope you get it sorted Dezzo/

[Shaun]

Originally Posted by Incognitas

Hmm! I think they may be in a grey area here.I think it is worth challenging it.At least if you get enough publicity then it will be a lesson to others who use internet insurance companies and it might get Elephant to reconsider and return your money.

I'd guess he paid it all up front on his debit/credit card if there is a refund to be had?

[etccarmageddon]

her indoors had a lot of problems with Elephant - not returning calls and constant staff change - ie. you'd ring about something and deal with fred blogs... you'd chase it up due to no action and find fred blogs no longer works there - this happened a lot.

so I'm not suprised by this "hadn't received the copy of the no claims letter" - of course they got it but due to their admin issues they buggered it up.

another of her indoors's problems was that elephant repeatedly failed to send out proof of her no claims when she moved to a proper competent insurer - which caused a lot of stress.

to conclude, elephant are useless.

[Janusian]

Originally Posted by Raistlin

The problem is that Elephant do state quite clearly that they will only contact you by email.

The policy along with the schedule is the legal contract on which the insurance is based, and over-rides any other correspondence, disclaimer etc. They clearly say in this to cancel a policy they will write to you at your last known address. So they have breached their own contract.

[Derek]

Originally Posted by Shaun

I'd guess he paid it all up front on his debit/credit card if there is a refund to be had?

Yep it was all paid upfront and I don't recall seeing a refund back onto the card but have ordered a copy statement to double check.
__________________

Originally Posted by Janusian

They clearly say in this to cancel a policy they will write to you at your last known address. So they have breached their own contract.

They say a letter was sent out but it never arrived. I would have thought something as important as this would be sent by registered mail to ensure it is delivered.

[ian@huth]

Another problem that might exist is that of obtaining new insurance. Will the no claims bonus already gained be accepted by a new insurer with the gap in cover? What will happen if a new application is made and the "have you ever been refused insurance" box is ticked?

[orangebird]

Originally Posted by ian@huth

Another problem that might exist is that of obtaining new insurance. Will the no claims bonus already gained be accepted by a new insurer with the gap in cover? What will happen if a new application is made and the "have you ever been refused insurance" box is ticked?

Any decent insurer will accept no claims from previous years even when there is a break in insurance. As long as you have proof, you should be OK.