to think this is illegal?

[CruzControl]

I have a provisional driving license and DH has a full, clean driving license. I was a named driver on his insurance. I had a seizure and the doctor said to stop driving (I barely did anyway) and contact the DVLA (which I did). We contacted our insurance company to tell them and remove me as a named driver. They've spent the last three months trying to decide what to do (apparently this is a VERY complicated situation for their tiny brains to understand).
They've now come back to us and said they're cancelling our insurance. We have to declare to all future insurers that we've had our insurance cancelled. In addition, they are charging us £125 for a cancellation fee!
They're saying they can't leave me on the policy because I don't have a valid license (because of the seizure) and that they can't take me off the policy without cancelling the whole policy.
Our insurance premium with everyone else will skyrocket and we've lost our no claims bonus - which seems unbelievably unfair. AIBU to think this is illegal? If so, what can I do about it?

The financial ombudsman service will not consider the complaint until the OP has a Final Response Letter or unless it's been over 8 weeks and she hasn't had that yet.

She will be provided contact details for FOS on the FRL or on the 8 week letter which they must issue.

@kleew1

Sounds like you are the policyholder which means the policy can't continue. You should only be charged for cover received. And you wont have to declare this as it doesn't fall under the guidelines re this question.

Yours,
Tiny brained insurance consultant

I. am. not. the. policy. holder. Calling yourself "tiny brained" ironically when you're struggling to comprehend that simple fact is quite funny really.

[quote kleew1]@Brainwave89 cancellation fees, i work for a large company - we charge £60 in the first year and £35 subsequent. This is standard. Ive never really heard of a fee being £10 or £20 even the administration fee is £26.[/quote]
Think you are confusing a cancellation fee with a short term rate. Removing a driver from a policy does not cost anyone £60. If you charge £60 for this you would lose at FOS.

@DesignerDesigner

There seem to be 2 issues here

1 Cancelling the policy/ changing it

2 Taking out a new one

The usual practice is to change the policy and they might charge £30 or so for 'admin'.

But I don't understand why your DH is being charged a lot more for a new policy- assume you have shopped around? It ought to be less for him on his own than with you as a learner driver!

Why is the new policy 2.5 x higher?

Surely you aren't making the mistake of ticking a box saying 'insurance refused' on a new policy/ quote?

which company is this?

I've had a licence for almost 50 years and never ever heard of anything like this with insurance so I think either you or they have got their wires crossed.

Yes, we are "making the mistake of ticking a box saying 'insurance refused' on a new policy/ quote" because the insurer has said we must declare on future applications that our policy has been cancelled.

Breath OP :o

Working in the industry (but not usually with motor policies) I can completely believe that there has been a fuck up. Financial services does however have one of the most regulated complaints procedures ever, so you should get everything properly resolved. Not always though, I actually have a complaint against FOS for their handling of my complaint which I referred to them because my bank wasn't.

Yes, we are "making the mistake of ticking a box saying 'insurance refused' on a new policy/ quote" because the insurer has said we must declare on future applications that our policy has been cancelled

Are you serious? You know now it's a mistake?.

So is there a chance you are taking this too literally?

Do they simply mean that it is closed which is very different from the implications of it being cancelled which could mean in the world of insurance that you committed fraud and are uninsurable?

I honestly think this is all about nuances of the terms used and there has been a misunderstanding perhaps by yourselves if you are not experienced in taking out car insurance.

What have they said when you went back to query this OP?

They need to give you a reason for asking you to declare the policy was cancelled and you need to tell all other companies.

What conversation have you had?

Just to clarify a few things:

1. I am not getting confused.
2. I am not the main policy holder. I am a named driver.
3. The insurance has been cancelled and we must declare this to all future insurers. Their email to DH said "You should now take steps to secure alternative insurance cover as all records will now be removed from the Motor Insurance Database (MID). Please note that the cancellation of this policy must be disclosed to any future insurer."
4. It took the insurance company over three months to respond to this. DH contacted them just after my seizure and they said it was a very unusual situation etc etc. They refused to remove me as a named driver and have now said our policy is cancelled because I do not have a valid driving licence.

Thank you to everyone who's responded with something other than "I think you're an idiot OP". I've looked into contacting the ombudsman but cannot do so until I've finalised the complaint with the insurance company. I have contacted the BBC and the Guardian about this issue.

@DesignerDesigner

Yes, we are "making the mistake of ticking a box saying 'insurance refused' on a new policy/ quote" because the insurer has said we must declare on future applications that our policy has been cancelled

Are you serious? You know now it's a mistake?.

So is there a chance you are taking this too literally?

Do they simply mean that it is closed which is very different from the implications of it being cancelled which could mean in the world of insurance that you committed fraud and are uninsurable?

I honestly think this is all about nuances of the terms used and there has been a misunderstanding perhaps by yourselves if you are not experienced in taking out car insurance.

The email says: "We write to confirm that your car insurance has been cancelled with effect from 13 October 2020 at which time all policy benefits ceased. Our records indicate that when you took out this policy you advised us that CruzControl held a valid driving licence. However, it has now been brought to our attention that CruzControl does not hold a valid driving licence. We are therefore writing to let you know that your car insurance will be cancelled with effect from 13 October 2020 at which time all policy benefits end. In accordance with the terms and conditions a cancellation fee of £75 would apply. This would be taken from any refund you are owed.

You should now take steps to secure alternative insurance cover as all records will now be removed from the Motor Insurance Database (MID).

Please note that the cancellation of this policy must be disclosed to any future insurer.

It is an offence under the Road Traffic Act (as amended) to drive a motor vehicle, or to allow others to drive your vehicle, on the road or other public place or to keep a vehicle (unless SORN has been provided to DVLA) without valid insurance being in place."

Again, this isn't a 'insurance refused/cancelled situation'. Please clarify the reason with the insurer so you can get a new quote without going into distressed markets.
The bit at the end of the email will be usual bum covering stuff sent to everyone :)

So it sounds like they are saying their records indicate that you said you had a driving licence when you didn't, and they regard that as fraud and a reason to cancel your policy.

But surely the 'cancellation' thing simply means you say you aren't already insured with someone else? (as well).

Why don't you just take out new insurance- for your DH- as a new policy and ignore what this previous company said?

And how can they refuse to remove you BUT at the same time say the policy is cancelled as you don't have a licence? That's totally illogical.

It sounds like a cancellation situation to me, given they say it must be disclosed: www.gocompare.com/car-insurance/guide/declarations-and-non-disclosures/

If they are right about what their records say then I'm not surprised they regard it as fraud. Someone messed up somewhere.

Did you tell the company you were a provisional license holder?

@DesignerDesigner

But surely the 'cancellation' thing simply means you say you aren't already insured with someone else? (as well).

Why don't you just take out new insurance- for your DH- as a new policy and ignore what this previous company said?

And how can they refuse to remove you BUT at the same time say the policy is cancelled as you don't have a licence? That's totally illogical.

We can't ignore what the company has said because supposedly whether you've had insurance cancelled before is put on a register of some kind. So you have to declare it or they'll find out anyway, and that's lying on an insurance application. They refused to remove just me from the policy, but are cancelling the whole policy (me and DH) because I don't have a valid licence anymore. You're right, it is totally illogical.

@Venicelover

Did you tell the company you were a provisional license holder?

Yes. And I've checked the "statement of facts" provided and it says provisional licence. Everything on there is correct.

@TeaStory

It sounds like a cancellation situation to me, given they say it must be disclosed: www.gocompare.com/car-insurance/guide/declarations-and-non-disclosures/

If they are right about what their records say then I'm not surprised they regard it as fraud. Someone messed up somewhere.

How on earth is it fraud!??

It seems perfectly clear to me from your 2nd update.

They agree you do not have a licence any more as your health conditions means you had to surrender your licence.

. However, it has now been brought to our attention that CruzControl does not hold a valid driving licence.

What seems to be missing is their copy of the dr's letter or your letter to DVLA saying you had to surrender your licence on medical grounds. Surely this can be clarified with a phone call and sending them the docs?

The fee for cancellation is £75. This is not illegal and no doubt in their T&Cs somewhere.

So it sounds like you have told them you don’t have a licence any more and they’ve heard it as you never had a licence.

@CruzControl The bit they are missing is your medical records and what you told DVLA about having to surrender your licence.

Don't forget that all of the above from them is a cut and paste job from a computer. I think what has happened is they do not know about your health and have missed that bit.

How on earth is it fraud!??

I already explained that. They believe their records show you claimed to have a licence when you didn’t. (I understand you disagree and have paperwork showing your side).

@TeaStory

So it sounds like you have told them you don’t have a licence any more and they’ve heard it as you never had a licence.

Surely they would've checked the DVLA when we took out the insurance to check that my licence is valid?

Surely they would've checked the DVLA when we took out the insurance to check that my licence is valid?

Yes, you would think so.

Surely they would've checked the DVLA when we took out the insurance to check that my licence is valid?

That's not the point. No of course they don't check with DVLA as far as I know. The only people checking your licence are the police and its almost impossible to have a dud DL as it's photo ID.

Have you actually told the insurers about your medical status and surrendering your licence and the dates? Cos it sounds as if they don't know.

@CruzControl

You have let everyone comment on this post missing out the fact your policy was in fact cancelled due to the wrong information being entered and its a completely different issue than the initial post.