Insurance, was I mis-sold ???

[Jelster]

OK, so I've had to claim for the SV, hey s**t happens.

When the 'Blade insurance was up for renewal I decided to get a multi-bike policy as the price was about the same as the Blade F/C and the SV TPFT, which meant both could have F/C insurance for about £700.

While I was trying to negotiate with the guy at Carole Nash, he offered hat I could pay £245 now, and the remainder split in equal payments over the next 3 months, at no extra cost. I could pay it in 1 go, but Bennetts didn't offer me this so I decided to stick with CN and take the "free finance" option.

So, when I make my claim I'm told that I have to pay the remaining balance before the claim can be actioned :shock: WTF, so why wasn't I told that when I made the decision. They made the sale on the promise of free finance, and now want to revoke the privilege... I've spoken to a supervisor who thinks that there is nothing wrong with how the guy sold it too me.

Don't get me wrong, CN are a great insurance company, and the SV has already been moved to a "proper" body shop, and the assessor is due in tomorrow. I'm just really annoyed at the way the policy was sold; I've been a sales professional for over 20 years and the attitude they've taken over this (to me) really stinks...

Am I just getting wound up for no reason ? I can afford to pay it, it's just the principal......

.

[TSM]

Seems to be the norm with most insurance companies. They split they payments but as the policy is actualy for a year then you are still bound to the full ammount. If the policy was per month like mine you would not have this problem. Check the contracts but im sure it will say that you have to pay the balance before any claim is fully actioned & finalised. Its them trying to recoop the cost of the claim. Annoying.

[Jelster]

I'm not upset about the terms, but I was sold the policy on this benefit, which they don't tell you can be taken away. Somebody may struggle to meet those payments, or even, you could have an accident and make a claim before the "booklet" actually gets to you....

I haven't been "fleeced", but I have, IMO been mis-sold.

.

[Mr Toad]

CN did the same to me when I trashed the bike in France :cry:

Apparently CN have paid the full sum to the insurers, and they have the arrangement with you whereby you pay the outstanding balance in instalments to them over the course of the term of the insurance.

I believe it's somewhere in the small print . . .

So you've got to cough up, as they've already coughed up :(

[Viney]

I dont think that you have been mis sold, as thats what i would expect the deal to be. However, it should have been pointed out that in the event of a claim, that the outstanding ammount on the insurance will need to be settled before a claim can go ahead, which afaik is the case no matter what instalement plan you are on.

Tis a bummer though steve. :(

[GSXR Carlos]

we know what you mean, and i think everyone else would feel the same way, it's just the way they work

it could be hard for someone to pay, i'd ve interested to see what was in your small print

i'm fortunate, my mum pays the full nsurance on her tesco credit card (its the points you see) and i pay her back in installments/when i can <<< lucky me :wink:

i suppose its the same thing in that sense :roll:

[Jelster]

However, it should have been pointed out that in the event of a claim, that the outstanding ammount on the insurance will need to be settled before a claim can go ahead, which afaik is the case no matter what instalement plan you are on.

Thanks Ian, that's exactly my point... I can pay it, I just would have liked to have known what the score was before I said "Yes"....

.

[Scooby Drew]

I would make a complaint to the Financial Services Authority as they seem to be misrepresenting their product/service. You might need to ask them about their complaints procedure though (I'm not sure how get to the FSA directly. Northwind might know...)

Drew

[northwind]

If it's in the paperwork, then I think you'd get nowhere with the Ombudsman. Basically, insurers are not expected to tell you every detail of a policy before commencement. Instead, you get the cooling off period (can't recall what this is now for GI and motor insurance, but I think it's 14 or 28 days), which is designed to give you the opportunity to consider the full implications of the policy and to check the small print, and act upon it without prejudice.

It'd definately be good practice for them to tell you at the point of purchase, but I think that's all.

What's quite common in the industry with situations like this is to deduct any outstanding amount due on the policy from the settlement amount... Which always struck me as a reasonable and sensible approach.

Carole Nash are a bit different from most with this scheme though, I think... They seem to defer the payments, while most companies that offer you installments do it as a credit agreement. So in their case you've really not paid for the policy, whereas in the case of the credit agreement you actually have paid for the policy in full, and you're paying off a loan taken out to pay the policy. I could be wrong with this though. If I am wrong, then while it's not misselling it might be a breach of the Consumer Credit Acts, which would have much the same effect. Did you sign a credit agreement?

So no, I doubt it would be considered mis-selling. It could be considered bad selling, though.

What happened to the SV? I muust have missed that, you only just got the thing!

[jonboy]

CN do charge for split payments, it's not free.


.

[Fizzy Fish]

This approach seems pretty common - I had to do the same when my car was stolen a few years back. v annoying when you're only 2 payments into a 10 mth payback period!

I remember pointing out at the time that the fact I chose to pay by installments surely indicated that I couldn't afford to stump up a whole year's premium at once - didn't get me anywhere though!

[northwind]

CN do charge for split payments, it's not free.
.

Yup, but what's important is if you simply owe them the money for the policy, and they take it in installments, or if they arrange a credit agreement and you've paid for the policy and owe them for the credit agreement. It seems a thin difference but it'll make a huge difference from a legal perspective.

[Jelster]

CN do charge for split payments, it's not free.


.

Mine worked out about 50p cheaper...

.

[SV650Racer]

simply why would they pay out on your policy if you had only paid half the payments?.

What i am trying to say is after your claim if the bike had been stolen (i am asuming this is what happened) the insurance on that bike would be voided as the bike no longer exists technically. The insurers then pay your the money under the claim. BUT you have only paid half the premiums.

So would you rather keep on paying to insure a bike you no longer have?.


Its the same with finance. When you right off the bike or it gets stolen the finance has to be cleared. If your not fully comp then its down to you to clear it.

Makes sense.

Having worked for the FSA you havent been missold. The policy you were sold for appropriate for your circumstances.

Misselling is when they sell you a policy that isnt suitable for your needs.

[Peter Henry]

Pointed out or not Steve,this requirement for full premium to be paid immediately in the event of a claim is as old as the hills. It is unfortunately almost common place for people at point of sale not to actually mention this. You can be forgiven for not raising the question as I am sure that a potential claim was far from your immediate concerns. :?

[Jelster]

Sarah, I had an off, and it's a 2 bike policy.... I still need to keep the policy for the 2nd bike no mater what happens to the SV.

I fully understand (now) why they want the policy paid up, what I'm saying is that one of the key factors that I took the policy is that I got to pay it off over 3 months, and they offered this when I was trying to negotiate a price. However, I was not informed that the balance was payable if a claim was made.

I feel they sand bagged me. I've been a sales professional for over 20 years, and in my opinion, selling me this without ALL the information was wrong...

That's my point....

.

[Flamin_Squirrel]

Its the same with finance. When you right off the bike or it gets stolen the finance has to be cleared. If your not fully comp then its down to you to clear it.

Wait, are you saying if you stack a new bike you bought on finance, you have to pay the entire remaining balance there and then? :shock:

[TSM]

Can you get GAP insurance on bikes?

[Flamin_Squirrel]

Its the same with finance. When you right off the bike or it gets stolen the finance has to be cleared. If your not fully comp then its down to you to clear it.

Wait, are you saying if you stack a new bike you bought on finance, you have to pay the entire remaining balance there and then? :shock:

If it's fully comp', the insurance pays out. If it's TPFT, you pay out, but you continue to pay off the finance at the same rate as usual, right?

I hope so!

[northwind]

In theory, HP or bike finance is a secured loan, secured against the property. If this property is lost, then the security is also lost and the lender can generally call for repayment. Some financiers insist on comp insurance for this reason.

[Jelster]

Can you get GAP insurance on bikes?

Yes, I was offered it when I bought my 'Blade. I decided against it...

.

[Scooby Drew]

selling me this without ALL the information was wrong...

That's my point....

.

That's why I said that you should speak to the FSA, they need to hear about things like this. They/the insurer will either set you right about what they do/don't have to tell you or the FSA will 'take them around the corner for a word in their shell like'...

[northwind]

I feel they sand bagged me. I've been a sales professional for over 20 years, and in my opinion, selling me this without ALL the information was wrong...


the bottom line is, they can't give you all the information. The terms and conditions of my last policy covered about 6 pages... If they started to give you that over the phone you'd fall asleep ;) But you did have the cooling off period in which you could have cancelled without losing a penny, subsequent to checking the documentation. You can't say they didn't give you the information, they just didn't highlight it for you.

I totally understand why it's annoying... Like I say, I think it's pretty poor practice. But it's a long way from poor practice to misselling or even being out and out wrong. they could equally turn to you and say that not reading th policy detials was wrong.

[busasean]

tell CN to poke it and go with Ebike!

[Quiff Wichard]

MRS Quiff is an insurance broker.!!!

how often she comes home and says she has had someone ranting about this very thing!...

she has a stockanswer for it..!!


I will let her post it wen she gets in from getting the food in to make my tea!!!

[Quiff Wichard]

How the insurnance company looks at it if you owe them money then they aren't
going to pay you out whilst you still owe them! **** i know but does make sense
if you think about it.

Its like if u are £300 overdrawn at the bank and £2000 wages go in.. U will only be in credit for £1700 .....

Mrs Quiff

[lynw]

the bottom line is, they can't give you all the information. The terms and conditions of my last policy covered about 6 pages... If they started to give you that over the phone you'd fall asleep ;) But you did have the cooling off period in which you could have cancelled without losing a penny, subsequent to checking the documentation. You can't say they didn't give you the information, they just didn't highlight it for you.

Exactly how I look at it. So, annoying as it is, sorry Jelster but it comes across to me as you want to blame the insurers for you not reading the policy small print. :?

Makes me glad I didnt have a 2 bike policy given the SVs October accident was outstanding in January when the CBR accident happened. :shock: :)

When the CBR got totalled I was on monthly direct debits that went out until October 05. They continued with that because Finsure had paid in full to MCE/Red Star and my policy payments were to the Finsure credit company so it depends on how the insurance is paid for tbh.