Don't be bullied by your insurance company
If your insurer is trying to put you off from making a valid insurance claim, use the law to fight back.
Fresh from a holiday, I have a habit of cornering people with glowing tales of my travels. Although I’d love to whip out the photo album right now, the story below is of a more subdued nature.
Halfway through my trip, I was suddenly taken unwell and ended up in a foreign hospital with a rather shocking bill. Fairly confident the cost would be covered by my travel insurance, I made the necessary calls and forgot about it until touching back down in the UK.
Not so straightforward
My ‘straightforward’ claim then morphed into something more complex requiring several phone calls, emails, a shouted international call on Skype (though at 1.6p a minute, it’s worth a vocal work out) and digging out numerous past records. That was before even looking at the claim form. Now I’m waiting with baited breath for the outcome.
Despite being a palaver, it’s normal to have to gather proof of, and relating to, your claim. But what if the request for documents seems unreasonable? Where is the line drawn?
If your insurance company is giving you the silent treatment, or you think it’s creating extra paperwork for you, speak up. A relatively recent piece of law exists to protect you.
The nitty gritty
Your law in shining armour is found in the Consumer Protection from Unfair Trading Regulations 2008. They encourage the fair treatment of consumers by prohibiting certain practices.
If your insurer acts in a way which dissuades you from making a claim, it is illegal. This is one of 31 no-no’s on a black list and is considered to be automatically unfair (no further legal tests are applied).
The legislation states it is an unfair practice if you are asked to produce documents ‘which could not reasonably be considered relevant as to whether the claim was valid’. Use your common sense with this one and don’t blindly accept what’s being asked of you without enquiring. If you don’t think a document is relevant, it probably isn’t.
The other example is if your insurance company ‘fails systematically to respond to pertinent correspondence’. So be wary if you fail to get a response you need.
If you’re tempted to chase your claim up, and you’re given a costly 0845 number, remember to check for a cheaper alternative before getting in touch.
Action stations
So what can you do if you think you may be a victim to this banned practice?
The regulations don’t give you what’s called a ‘right of action’ against your insurance company. However, the Office of Fair Trading has a duty to enforce the law on your behalf.
It’s always worth pointing out to your insurance company that its actions could constitute a criminal offence and that might do the trick.
If not, contact Consumer Direct or Consumer Focus for advice and to check that your complaint is valid. You then need to file a complaint with your local Trading Standards office, giving details of the company, the practice and how it impacted on you.
A warning letter from an enforcement authority may have the desired effect but more formal options, such as criminal investigation and prosecution, are available for more serious cases.
Not worth the hassle
Of course, you may decide it pays not to make a claim, regardless of the behaviour of your insurance company.
It’s still wise to be aware of the regulations as they cover a multitude of dodgy dealings including misleading and aggressive practices. If you want to know more about them, check out this quiz.
Have you ever had any difficulties making a claim on your insurance? Why not share your experiences with your fellow lovemoney.com readers via the comment box below?
More: Compare travel insurance quotes | Get your insurer to pay out | Your car insurance isn’t as comprehensive as you think
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I had a legitimate claim under the lenders PPI eight years ago but they consistently denied I had a claim and frequently ignored my letters. It was only when I threatened to go to the FSA that they suddenly had a change of heart. Even then they continued to make life as difficult as possible. Amwell44 obviously is involved in the insurance industry, a fact he would have done better to declare upfront. The general malaise in ethics in business these days will not have passed by the insurance industry. Passing on the costs of fraudulent claims to customers is not just and the insurers should get off their backsides and investigate suspicious claims properly rather than being lazy and passing on their costs. A few high profile prosecutions of fraudsters would soon make people think twice.
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I work helping victims of negligence claim compensation and am proud to do so.This thread is a breath of fresh air and a great counter to the "compensation culture" argument that is so effectively spun through the press. A couple of tips: 1) When dealing with an insurer make sure that you give them your claim number (or if you haven't got one yet, your policy number) at the beginning of any call. It makes you sound switched on and experienced, reducing the chances of them trying to waste their time by bluffing you. This is the key that turns the lock into their system by making it easy for them to know who you are and why you're calling. Also in my experience they can normally transfer you to the relevant office without you even knowing it if they have this information. 2) Back up your claim with proof. This helps enormously as most claims handlers are overworked, underpaid and undervalued. Giving them something that they can fall back on if pressed increases the chances of them rubber stamping your claim and passing on to the next one where they are more likely to make an impact. The internet can give you valuations on almost anything using such sites an Autotrader for motor related stuff and of course ebay. for just about everything else. If your claim is valid and honest (which of course it should be) DON'T GIVE UP!
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I do work for an insurance company. There are 2 reasons that people have problems with claims (shareholders have nothing to do with it whatever you may wish to think as generally all claims monies are 'reinsured' with other companies). So those reasons are: - Costs: Customers tend to buy the cheapest insurance products rather than the best, so insurers have been falling over backwards to reduce their costs (to be the cheapest). Falling costs = poorer service & systems. Simples. - Fraud: Like it or not, certain insurance types (e.g. motor & home) do get A LOT of fraudulent claims (£billions per year in the UK). Trying to weed some of this out will undoubtedly cause some pain for honest claimants. It's nice to bash big faceless insurance companies, but I assure you there's nobody there looking to unfairly not-pay your claims (do yo uthink the claims staff are on commission or something? They're not.)
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13 November 2011