VHI Can I change or leave my VHI plan just past the cooling off period?

2

28Myrtle

Registered User
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My VHI renewal date is 1-Jan. The VHI wrote and left phone messages for me before Xmas, but unfortunately I put off dealing with due to the holiday season. I finally got around to calling them on 16-Jan as I want to change plan - the one my family is on is far more than we can afford or need.

The VHI advisor told me that I can't change as it is past the 14 day cooling off period. If I want to cancel, there is a €50 cancellation fee and I have to pay VHI the government levy which would be €970!!

It seems like I have only two choices - carry on paying huge insurance fees for another year or pay over €1000 to get out of it.

I do understand that my own failure to act promptly got me into this situation, but it still seems very unreasonable.

Does anyone know if there are any alternatives?
 
28Myrtle;

I am nearly certain , you have 30 days grace without penalty?
Within that month I understand you can change to another provider etc.

Sounds like an agent being unfair.
 
They definitely won't let me change plan or make any other changes (without a €1,000 penalty) after 14 days, not 30.
 
I'm in the same predicament......an 800 euro increase this year in Company Plan Extra Level 2 for 2 people........horrendous jump.

Sadly, I wasn't proactive enough and have passed my 14 day cut off period. It looks like I'm stuck with it for the year :(

I certainly won't be making this mistake again, certainly it'll pay to shop around late this year before next year's insurance comes up for renewal!
 
BazzaDP said:
Looks like VHI doesn't even allow you to downgrade after the 14 days:
http://www.hia.ie/consumer-information/switching/
Click to expand...

This is a good post BazzaDP. However, the key point is that health insurance is a contract for a defined period. So, the contract should not roll over automatically. That is why you are contacted before renewal. The 14 day cooling off period is only when you enter into a new contractual arrangement. If you had entered into a rolling arrangement then you would have had just one cooling off period and that would have been at the beginning of the original contract. In this instance, I would take the view that 28Myrtle had not entered into a new health insurance contract and that 28Myrtle did not have the intention to allow the automatic renewal. That said, the terms and conditions of the contract 28Myrtle entered into could have specified an automatic renewal unless the company received notice or payment ceased.

So, the steps I would follow are:

1. Check the TCs
2. Do not pay the first payment or revoke the bank's authority to pay
3. Inform in writing that the policy was not to auto renew.
4. Inform VHI that you wish to make a complaint formally
5. Seek final response from VHI if you are not satisfied with complaint finding
6. Refer complaint to FSO

These are not intended as advice, just a list of steps that I would take depending on the circumstances and the context for the situation.

Having had dealing with VHI in the past I have found them slow to yield to pressure during the first few stages and only become more amenable as the situation escalates along the complaint ladder.
 
All insurance policys are rolling contracts.

Its even stated on the letter you get with the renewal that you can make changes up to renewal otherwise is renews as is for 12 month contract.

Dont like to play devils advocate here but there isnt much more they could have done to draw attention to the renewal, its up to you after that.

T&Cs do state the 12 month contract, etc. so to be fair, making a formal complaint isnt going to change the outcome.

I only know this as I have been burned before on this by another company and I read everything now
 
Thanks all for your information and suggestions.
I will read the T&Cs carefully before deciding what to do, but I think I may be stuck with this till next December when I will hightail it away from VHI. Based on the HIA website info, they seem the most strict. I'm not sure I have the persistence to follow Orga's suggestions. The person I spoke to in VHI said that they would pursue it if I just stopped paying, and then there's also the problem of a break in cover which could cause problems if I want to move to another insurer.
TippGal, I'm not totally sure you're right that all insurance policies are rolling contracts - I'm pretty sure my car insurance isn't - but I do think you're right about health ones.
The lesson for me is to not put things off - it can cost a bundle.
 
My own car insurance automatically rolls over every year - must check out if thats right now too in case I get stung again!!! I guess we all learn these things the hard way unfortunately :(
 
Hi 28Myrtle,
I am in the same problem. I missed the 14 day cool off by one day!(is Sunday included in the 14 days as VHI phone lines are closed Sundays)

So I called them up and got the same story. It is too late and I can not cancel. I told them I have no money and cannot pay, and was informed that in the event of a direct debt not going thought(after i think 2 attempts) VHI will see this as a breach of contract and it will be canceled. All previous monthly payments will be lost(ie you wont get them back) and you will not be covered.
In about three weeks I will get a bill for the government levy(€350) + admin charges(50).

I asked about auto renewal and was told that this has to be applied due to people been in hospital on renewal day and therefore will not be covered after renewal day.

I was then given an address to which I can send a letter asking to cancel by contract and not pay the levy +admin free and also get back my monthly payment. The address is:
Appeals department
Vhi Healthcare
IDA Business Park
Purcellsinch
Dublin Road
Kilkenny

I was told that VHI will examine the case and then give me an reply in 5 working days. However I wasn't given a time frame where VHI will initially look at the letter. So in theory it could be months...

My plan is to
1 Cancel via the my back direct debt.
2 Compose a really detailed and emotional letter regarding my finances.
3 If the appeal fails, try again.
4 If the appeal fails, try again.
5 If the appeal fails, try again.................

I am not sure how many times I can appeal but I have nothing else to loose. In-fact I have about €400 + 1 monthly payment to gain! I am going to make them sick of me....

Also on a side note this government levy gets my goat. VHI say they pay it in full at the start of the policy, but if the policy is cancelled can VHI claim back this levy? Or can I claim back this levy?
I was told that the levy is pro-rata in that if I canceled next week the levy will be less than €300. Which makes me believe what it can be claimed back
 
The levy is paid by the insurer to the government in one lump sum so the insurer will look to recoup it back from you cos they are at a loss of that.
I used to work for insurance company and i know these things can be frustrating but the companies do send out the renewal about a month beforehand so including the 14 days after renewal, I would think that to be loads time! I know you only missed the cooling off period by 1 day but it has to end and some point. Otherwise it would be a 15 day cooling off period!!!
 
The timing of announcement is an apparent strategy by the vhi as it appears to have coincided with the cooling off period terms and conditions. Customers who renewed on January first are now effectively subsidising people who available of these new rates. Tracker mortgage come to mind.
 
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