Lude Generation

anyone help please I renewed my insurance policy and decided to cancel due to change in circumstances ive lost my deposit and they request another £83 from me before they can cancel and send me my no claims its been running for a day any help will be appreciated

http://www.confused.com/car-insurance/g ... -insurance

Under UK insurance rules you have a 14 day cooling off period, point this out to them.

Yep. You shouldn't get those sort of charges for cancelling after 1 day!

As a "consumer" you are entitled to a 14 day cooling off period, even at renewal. This will be contained in the TOBA issued by your insurance provider, as will their fees.

If you have only been on cover for 1 day, then you should be charged 1/365th of your actual insurance premium (not the total renewal premium, as this would have included provider fees etc, but the actual insurance premium) plus a "reasonable" fee from the provider. The reasonable fee is normally £25, sometimes £50, depending in the TOBA.

So if your annual premium was £500, you should be charged £1.37 time on risk plus the providers admin fee.

Care to say who is charging you your deposit plus another £83? I can then see if they publish their TOBA online and try and work out what you should be charged.

If you need to get technical, then this is what the FCA have to say about it:

Payment for the service provided before cancellation

ICOBS 7.2.2

01/04/2013

FCA

(1) When a consumer exercises the right to cancel he may only be required to pay, without any undue delay, for the service actually provided by the firm in accordance with the contract.

(2) The amount payable must not:

(a) exceed an amount which is in proportion to the extent of the service already provided in comparison with the full coverage of the contract; and

(b) in any case be such that it could be construed as a penalty.

(3) A firm must not require a consumer to pay any amount:

(a) unless it can prove that the consumer was duly informed about the amount payable; or

(b) if it commenced the performance of the contract before the expiry of the cancellation period without the consumer's prior request.

(4) A consumer cannot be required to pay any amount when exercising the right to cancel a pure protection contract.

(5) A consumer cannot be required to pay any amount when exercising the right to cancel a payment protection contract unless a claim is made during the cancellation period and settlement terms are subsequently agreed.



[Note: article 7(1), (2) and (3) of the Distance Marketing Directive]

ICOBS 7.2.3

01/04/2013

FCA

The amount payable may include:

(1) any sums that a firm has reasonably incurred in concluding the contract, but should not include any element of profit;

(2) an amount for cover provided (i.e. a proportion of the policy's exposure that relates to the time on risk);

(3) a proportion of the commission paid to an insurance intermediary sufficient to cover its costs; and

(4) a proportion of any fees charged by an insurance intermediary which, when aggregated with any commission to be repaid, would be sufficient to cover its costs.

ICOBS 7.2.4

01/04/2013

FCA

In most cases, the FCA would expect the proportion of a policy's exposure that relates to the time on risk to be a pro rata apportionment. However, where there is material unevenness in the incidence of risk, an insurer could use a more accurate method. The sum should be reasonable and should not exceed an amount commensurate to the risk incurred.

ICOBS 7.2.5

01/04/2013

FCA

An insurer and an insurance intermediary should take reasonable steps to ensure that double recovery of selling costs is avoided, particularly where the contract for the insurance intermediary's services is a distance contract, or where both commission and fees are recouped by the insurer and insurance intermediary respectively.

thank u all I will let u no the how it goes they are just trying it on

Which company is it?

dna insurance mate

Is it motor trade insurance?

yes mate

Ah - that's not covered under consumer protection then and they can probably charge what they like.

You might like to try the line that this is a temporary change in circumstances and you'd hate for your potential future business to be affected by their response to what was an honest mistake on the part of their valued customer this time around...