Insurance co- taking incident disclosure and recording as "Claims" - HotUKDeals
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Insurance co- taking incident disclosure and recording as "Claims"

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Has any one else had a shock when they disclose incidents which werent their fault to insrunace companys to cover themselves and then find the insurance companies record disclosures as claims? Even th…
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8y, 11m agoPosted 8 years, 11 months ago
Has any one else had a shock when they disclose incidents which werent their fault to insrunace companys to cover themselves and then find the insurance companies record disclosures as claims? Even though no action was requested of the insurer?
I did!

Basically Sheilas wheels are miffed I didnt renew with them when they sent a renewal notice at £411sh (when they recorded a disclosure as a claim). I looked around and took a new quote with them which came out at £390sh (I didnt record the disclosure as a claim) they now want the difference back!.

Details of a letter I composed in preparation to insurance ombudsman - comments and advice appreciated.

Thanks

"I would wish to complain about the service provided by Sheilas Wheels to my family, I have been a customer with Sheilas wheels from 2007-2008 and recently renewed in March 2008.

In the renewal documents, I noticed they had recorded a notification of damage as a claim and recorded they had recovered costs when I had not even recorded a claim! After looking around, the insurance with them lapsed and I contacted them again to provide me insurance cover as a new customer.

I received a letter requesting evidence of no claims bonus and my wife who is the policy holder contacted on them on 7/4/08 to ask them to check their own records as we were a customer with them. Their customer service advised us we would have to pay an additional £21.77 due to two claims recorded against us which were not disclosed.

I subsequently Spoke to XXXX, Duty Manager at Sheilas Wheels I requested clarification as to how these charges had occurred.
Mr X advised Sheilas wheels has a policy of charging customers for disclosed information on incidents which could result in a claim.

In our specific circumstance, he advised we had 2 x claims registered against us;
a) 2006 Coach reversed into our car- notification only by us to esure.com ; recorded as Accident claim
b) 2007- Car was scratched during an assault upon the driver notification only by us to Sheilas Wheels; recorded as Malicious damage claim.

I clarified, re the claims above;
To point a) the damage caused by the other party reversing onto us was negligible and we decided it would not be worth the effort or premium/claim no claim form was completed and agreement with esure.com not to proceed.

To point b) I was advised by Sheilas wheels rep X on the X X 2007, the assailant would need to be charged before any claim could be made, therefore we agreed to notify only and if there were no police charges against the attacker we would not go beyond notification.

I also explained, at no point were we made aware that notifying Sheilas Wheels of incidents (when the disclosure wouldnt affect the policy or insured vehicle.) would result in us being charged monies and claims being recorded against us.

Sheilas Wheels Policy
Mr X asked me to refer to Sheilas Wheels policy booklet, on General condition which apply to sections 1-7 page 24. I read and asked where it stated Sheilas Wheels would record notifications, evolve them into claims and subsequently charge customers for them. Mr Stuart could not evidence and explained it was Insurers policy which he could not put in writing or evidence in the policy booklet.

Mr X clarified verbally, Sheilas wheels keeps a record of notifications and would subsequently increase premiums after 2x notifications, even if no activity or claim is progressed. These notifications would then be officially recorded as claims.
Mr X could not respond to the renewal notice from Sheilas wheels to me which did not list claim (a) furthermore claim (b) was recorded as recovery made even though no action was ever requested or undertaken by Sheilas Wheels.

Mr X advised he could not make any changes for specific customers and this was Sheilas Wheels policy, he checked and clarified this with the head underwriter X X who supported his position. Mr X advised he could not provide me with any ombudsman details, and would ask for a complaint form to be sent to me which I should receive in 5 working days, I would be expected to put my complaint in writing and I could not escalate to any other parties until I followed Sheilas Wheels process.

I am disappointed and disgusted with this treatment by Sheilas Wheels (and Esure.com who are the same company), they apparently can choose to record any event which their customer discloses as a claim, even if they do not request a claim.

A charge will then be levied against the customer and customers insurance will be affected by these claims. This policy is not recorded in any booklet or disclosed to a customer. I would be grateful for an investigation into this fund generating exercise and the removal of the claims from our records.

Thank you for your assistance"
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8y, 11m agoPosted 8 years, 11 months ago
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#1
I might be missing something, but I don't think this is a hot deal.
#2
I think all insurance companies do this - thats why they ask have you had any claims, accidents or losses in the past. It's their way of recognising that some people don't claim but do have accidents. That way they get the whole picture. I'm not saying I agree with it but when I worked for a rather large insurance broker this was standard practise. Sorry that you got caught up in it.

Sad thing is that in theory if you take out the policy and don't disclose it and they found out - it could invalidate the policy for the year and they could even report you to the police for not having insurance! I have never heard of this happening but was told that it was a possibility during my training. Plus I'm not sure how they would find out about it if you don't tell them. In fact they reckon they can do this with all details such as mileage, where you keep the car etc etc.

Keep trying though :thumbsup:
#3
It is standard practice with insurance companies to record any accidents or claims into account when processing an insurance quote.

OH is with Elephant and had to pay £250 extra for 3 accidents that happened this year, even though none of them were his fault. They said that even if he didn't make a claim, this shows that he is more likely to have an accident in the future.

Therefore, I can't see anyone doing anything if you write to them
#4
Having worked for an insurance company (don't want to say which one) I understand how annoying this is for people.

As far as I remember on the system these companies use they have very limited options as to what can be recorded. Having said that notification only can be placed on the system and should not be rated on, however, they may have changed this and started to rate on 2 or more notifications.

In all honesty I don't think you will get very far pursuing this and may be best to seek alternative cover.
#5
I had my insurance co send me a letter a year ago saying my car had been reported as being in an accident. It wasn't me or my car as it was new years day and i could pin point exactly where i was that day, the accident also happened 100's of miles away so insurance co just said ok must be a mistake and that i wouldn't hear any more.
Well, when i went to renew this year i was told there was a claim on my account and when i phoned them about it they said it was this matter, apparently even though its not been paid out it still has to be on my account. So it would seem that anyone can just give a reg no and it will affect that persons insurance. Now that is just plain stupid!!
#6
i reported an accident that was not my fault to my insurance comp even though they couldnt help me with the claim, i still got my no claim bonus for the year, although my premium went up when i renewed last month, but i ended up changing insurance comp and i got a far better bargain anyway.
banned#7
What I am reading here is quite incredable! How can you have your no-claims affected if they have admitted its nothing to do with you, that your car isnt involved, nor you as the driver? Why not claim Tony Blair pranged you? I doubt he would accept a clear fraud and deception, yet it seems they are claiming it is?

I always took being "any claims, accidents or convictions" to mean just that. ie any claims or accicents against you, or convictions, which would obviously affect the premium. If I am involved in an accident that was not my fault and has been paid out through the third parties insurers, then that is not a claim that should affect anything when I come to re-insure.

I would certainly challenge what they are saying here to the Insurance ombudsman, as it really doesnt seem right to me.
#8
carperkm
I might be missing something, but I don't think this is a hot deal.


This is in the misc section....

Deals are here....
#9
Thanks all, this seems insane to me which is why I want to pursue and make more people aware.. Making disclosures innocent as they may be will cost you £ when dealing with insurance companies.

example : if someones dog/cat decides to have a relationship with/on your car and you think hmm thats damaged my paintwork and I may need to claim if its serious damage..

You ring up to ask your insurance co. to decide wether to pursue or not - they tell you it'll cost you £350 excess...

You decide against it and drive around with dodgy paint on your new car..

Year down the line you get a renewal notice and checking under claims you see they have noted the pet stains as a claim against you and recorded "recovery made=yes"...
would you be miffed?

p.s mine wasnt pet stains.. :)) it was a coward with a metal bar who swung at my head and scratched the side of the car..

The insurance company said they couldn't do anything as he was walking and not in a car..
so i didnt pursue a claim and they have now recorded the disclosure/conversation against me with a note saying "recovery made..!" and want more money for this specifically.
The worlds gone mad! :O
#10
This is standard with all companies and as someone has already said you are required to report any incidents (whether you claimed or not) to any new company you move to. If you don't and you subsequently have a claim that they chose to investigate, and find out that you have failed to disclose you insurance is declared invalid and you are not covered.
Insurance companies do not do enough to inform customers of this in my opinion and many people get caught out by this every year.
Its just something customers have to accept I am afraid.
#11
long time since i studied it in detail but these might actually be offences against the data protection act where data recorded has to be "relevant".
Surely if no claim is being made against your policy this data is not relevant and should not be held?
#12
[quote=andrewnclark;1849967]Having worked for an insurance company (don't want to say which one) I understand how annoying this is for people.
can you answer me this then please
I have had a private policy for over 10 years which has had no claims on it but I do drive a company car and am insured on the company and had a non fault accident in the company car (some stupid woman tried to overtake me whilst I was turning right!!!!) 3 weeks ago. Do I need to inform my privite insurance company this when I renew next feb?
#13
fern;1851814
[quote=andrewnclark]Having worked for an insurance company (don't want to say which one) I understand how annoying this is for people.
can you answer me this then please
I have had a private policy for over 10 years which has had no claims on it but I do drive a company car and am insured on the company and had a non fault accident in the company car (some stupid woman tried to overtake me whilst I was turning right!!!!) 3 weeks ago. Do I need to inform my privite insurance company this when I renew next feb?


The short answer is yes. The long version is that you are required to disclose all incidents relating to the vehicle insured and all accidents that anyone insured on the policy has had, whether fault or none fault no matter whose vehicle they were driving.
#14
maddogb
long time since i studied it in detail but these might actually be offences against the data protection act where data recorded has to be "relevant".
Surely if no claim is being made against your policy this data is not relevant and should not be held?



This data is relevant as it enables the insurance company to calculate the level of risk they are taking in insuring someone. Even none fault claims cost the company something, especially with the level of uninsured drivers rising.
#15
Hi Kidcat,
In my instance there werent any claims of any sort - we disclosed information as a conversation to them to decide wether to progress anything. We concluded the other party which had reveresed on our car and the attacker werent going to admit liability and our premiums would increase beyond the damage caused.

We then rang them back to say we werent going to claim or anything (ergo no cost or work for the insurer).

A year down the line with the same insurance company they then recorded on my renewal note that I had a "claim" which has been settled and monies recovered - due to this supposed "claim" they have decided to increase my premium...
When I queried they advised they note all conversations before a claim is made and keep this hidden and weigh premiums on this, in Sheilas wheel case they allow 2 notifications and then formally record as a "claim".

IMHO The best option for any insured person is regardless of what happens to your car,.... decide what you want to do BEFORE you speak to the insurer. As soon as you speak to them they will note that conversation as a "claim" and increase your premium even if you didnt put a claim and thought you were having a conversation...

re the DP act, they hadnt notified anyone they are storing conversations as records of a "claim" on their systems; which they are then using as a money generating exercise without explaining the increase.
I feel they should disclose this in the schedule..

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