I read recently on another forum about a driver having his car stolen then written off. Only problem was that he had undeclared speeding points.
They still paid out, minus the extra premium he should have paid.
www.pistonheads.com/gassing/topic.asp?h=0&f=10&t=1025537&i=0&mid=0&nmt=
Seems ludicrous to me, if it's true.
M reckons (she worked for RBS insurance until recently) this is right enough and she's seen it done. "Claim redraw" she thinks it's called.
Is this right? How can this be justified? Throwing money away it seems to me.
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My understanding is the amount of redraw is based on the relevance of the claim to the missing information.
Speeding has nothing to do with theft, so the insurance company has applied the minimum reduction - the amount of premium they would have received had the proposal been filled in correctly.
Had this guy been involved in a high-speed crash, the reduction could have been much more.
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Bearing in mind that changing one's alloy wheels without informing one's insurers can invalidate a claim (allegedly) anyone who gets a pay out of any sort with undeclared points has struck lucky
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>> Is this right? How can this be justified? Throwing money away it seems to me.
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It is right. The Ombudsman says so.
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The rules on insurance are changing.
The principal of the customer must tell the insurer everything is still true, but it is now accepted that people are forgetful. Therefore the insurance companies are now being told by their ombudsman to consider all claims where there is a case of not being told the whole truth and to adjust the payout as a proportion of the what premium should have been paid against what has been paid.
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Insurance - Claim Redraw? - Iffy
