Insurance 'black-mark' ?

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ub3rm4n

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After submitting a claim with my ex-insurance provider, they not only rejected my claim, but also cancelled the policy for my car. Their reason for cancellation was that they assessed that the car was in poor condition, due to a previous accident, caused by the previous owner of the car, (it's a second-hand vehicle). The cancellation did not have anything to do with the claim (which was for windscreen damage).

So while I attempt to sort out getting my vehicle fixed, I'm trying to get insurance for an inter-rim vehicle with any other insurer other than the ex-insurer, and what bothers me is whether the cancellation of a policy by an insurer will affect my prospects of getting insurance (as one of the typical questions during the quotation process is 'have you had insurance cancelled by your insurer?'), even though the cancellation is not fraud-related. I'm bothered this will be a black-mark and a pain every time I need to get any type of insurance, or even submit claims for other existing insurance policies. I want to know if anyone has been in this kind of situation? How did it work out? Did you need to get any letters/documentation from from the ex-insurer? What kind of documentation? Any way to clear this (besides begging the ex-insurer) ?
 
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You will get insurance, the question is when it comes for them to do their part, will they?
 
Always work through a reputable broker. You must declair the cancellation.
Did the condition of the vehicle have any impact, cause to the claim they not paying?
If not write to the Ombadsman with all details.
I would insist on all premiums paid from inception being refunded.
If they don't refund then they have accepted the risk and must pay if the condition of the vehicle didn't impact on the claim.
 
All that happens is at Underwriting stage your premiums are adjusted, Up
The reality of the Short Term Insurance Industry
 
This is strange. When you take out insurance the car has to be inspected by a representative or appointed agent of the insurer. Surely they would have noted the condition of the car at that stage? If you bought the car as is then it will be in the same condition as when it was inspected except for the wind screen damage that you're claiming for. You must fight the cancellation, because if you leave it your premiums will sky rocket with future insurers.
 
R13... said:
This is strange. When you take out insurance the car has to be inspected by a representative or appointed agent of the insurer. Surely they would have noted the condition of the car at that stage? If you bought the car as is then it will be in the same condition as when it was inspected except for the wind screen damage that you're claiming for. You must fight the cancellation, because if you leave it your premiums will sky rocket with future insurers.
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This. They can't just sumarily dismiss your claim on condition of prior damage if it was disclosed that the vehicle was second hand and that it was inspected prior to insurance comencement. I'd definately raise it with the Ombudsman. Large insurance company?
 
ub3rm4n said:
(as one of the typical questions during the quotation process is 'have you had insurance cancelled by your insurer?')
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Get insurance from a company for one month. Cancel it, then go the company you want. You can then honestly answer the question, no.
 
Thanks for the feedback. When I was told about the cancellation due to poor condition I asked the guy why this wasn't picked up during inspection of the vehicle when I took the policy. Gave me some b$ about the inspection agent only checking the front, back , windscreen, basics, etc. and that it was during claim assessment they were able to do a rigorous checking of the vehicle. Which begs the question - Why the heck don't they do the "rigorous checking" at inspection, before I have to start paying for the policy?? While the claim rejection is a pain, I worry the policy cancellation by them will screw me over. I am raising a complaint via the ombudsman, hoping for the best.
 
Jab said:
Get insurance from a company for one month. Cancel it, then go the company you want. You can then honestly answer the question, no.
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No you can't. The question is "have you ever had insurance cancelled"
 
Would they not ask why it was cancelled, if you answer that you had it cancelled?
 
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ub3rm4n said:
Thanks for the feedback. When I was told about the cancellation due to poor condition I asked the guy why this wasn't picked up during inspection of the vehicle when I took the policy. Gave me some b$ about the inspection agent only checking the front, back , windscreen, basics, etc. and that it was during claim assessment they were able to do a rigorous checking of the vehicle. Which begs the question - Why the heck don't they do the "rigorous checking" at inspection, before I have to start paying for the policy?? While the claim rejection is a pain, I worry the policy cancellation by them will screw me over. I am raising a complaint via the ombudsman, hoping for the best.
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They accepted your money in premuims post inspection, they've accepted liability. Ombudsman should have fun with this one.
 
Usually insurers would accept cover initially but on the basis that the vehicle will be inspected within a certain timeframe. Sometimes the inspection is waived if the vehicle is bought from a reputable dealer or there was no break in insurance cover. If damage is found on a vehicle, an insurer would normally exclude any claims relating to the portions of the vehicle that are damaged and may also adjust the total value of the vehicle. Cancelling cover usually points to a risk that is not acceptable - more than minor damage. It shouldn't affect your future insurance premiums too much as most times the "have you had insurance cancelled" question is an underwriting check for whether the company would accept your business or not (not used in pricing per se) though an underwriter may want to load a premium because of the reasons. The question should also be accompanied by a reason for the cancellation so that informed decisions can be made. Also the pre-inspection check is often done by third parties who the insurance company has no control over. More thorough checks would also be too costly, pushing up the overall cost of insurance. Thing to remember that most insurance contracts can be negotiated and like any negotiation, you should ensure that you get the best deal for you.
 
Hemi300c said:
Always work through a reputable broker. You must declair the cancellation.
Did the condition of the vehicle have any impact, cause to the claim they not paying?
If not write to the Ombadsman with all details.
I would insist on all premiums paid from inception being refunded.
If they don't refund then they have accepted the risk and must pay if the condition of the vehicle didn't impact on the claim.
Click to expand...
As would I.
 
ub3rm4n said:
Thanks for the feedback. When I was told about the cancellation due to poor condition I asked the guy why this wasn't picked up during inspection of the vehicle when I took the policy. Gave me some b$ about the inspection agent only checking the front, back , windscreen, basics, etc. and that it was during claim assessment they were able to do a rigorous checking of the vehicle. Which begs the question - Why the heck don't they do the "rigorous checking" at inspection, before I have to start paying for the policy?? While the claim rejection is a pain, I worry the policy cancellation by them will screw me over. I am raising a complaint via the ombudsman, hoping for the best.
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They did a vehicle inspection and took your premiums.

Go to the Ombudsman and make the insurance company cough up what they owe you.
 
Far as I know an insurance company can't even refuse to insure you unless a vehicle is code 3.

Can you please name the insurance company in question?
 
Auto & General. Prospects of cheaper premiums landed me with them; stupid decision, never again.
 
That sounds like complete BS...

Call these guys: http://osti.co.za/

And yes, a cancellation of an insurance policy does affect your future "insurability"...so don't leave it.
 
Ahhh A&G...

I feel for you.

Tell A&G to sort their shyte out, they had the vehicle inspected at the initiation of the contract, they cannot now rescind the contract on those grounds. If they aren't forthcoming with fixing their shyte then go to the OSTI. Once they've fixed you up, get yourself a proper broker.
 
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