Home Forgot to cancel insurance policy - can I get a refund ?

I

icarium

Guest
Hello, hoping someone can advise please.

We had mortgage protection on our home from 2006 with Hibernian (now Aviva). In July 2007 we sold our home but forgot to cancel the policy on the house. We had a hectic few months at this time and when we looked at later bank statements after the move, for some reason we assumed that this direct debit was an additional payment for me on my husband's health policy (also with Aviva) through his job.

We had mail forwarding from our previous address for a year but never received any correspondence from Aviva regarding renewing this policy or we certainly would have cancelled it.

Today when my husband rang them to query this payment, we were told that we should have cancelled the direct debit and that the money was non-refundable.

Is it possible to push them for a refund or do we just have to chalk this one up? It was a small monthly payment but obviously after three years it has racked up a bit :)

Any advice would be greatly appreciated.
 

StevieC

Registered User
Messages
379
They will argue that if there had been a claim that they would have paid out the benefits.

I cant see them refunding you or being obliged to if you complain.

I think you will just need to chalk this one up to experience, sorry.



www.CheaperLifeAssurance.ie
 
I

icarium

Guest
Thanks for the feedback.

I've checked the original policy and it seems that the direct debit was for the life of the mortgage and there is nothing stated that the policy had to be renewed by us each year.

The only thing I might be able to argue with them is that the policy states that the monthly amount would not change, but it went up in October 2009. According to the policy, in such an instance 'we will send a notice to you outlining any change and your options', which I can only presume would have required us to agree to any changes. I'll give it a go anyway :)
 

Ravima

Registered User
Messages
2,697
If you did SELL the house, then you no longer had an insurable interest in it. You should write in to them, sending on copy letter from your solicitor confirming sale and date and ask for refund.

You will get nowhere by phoning, you must put it in writing.

This is one of the difficulties that can arise with a bank mandate that is automatically renewed by the insurer unless you cancel.

If you bought another house and had that insured whilst you also had the SOLD house insured, that should be further proof to them that you did sell the house.
 

LDFerguson

Registered User
Messages
4,269
I'm not a general insurance broker but isn't there an obligation on the insurance company or broker to send out renewal papers each year within a prescribed time limit? If Aviva or the broker failed to do this, it might help icarium's case for a refund.
 

Claimsman

Registered User
Messages
157
They will argue that if there had been a claim that they would have paid out the benefits.

I cant see them refunding you or being obliged to if you complain.

I think you will just need to chalk this one up to experience, sorry.



www.CheaperLifeAssurance.ie

They wont argue, or at least they shouldnt, that they would have met a claim, because as Ravima says, once the house was sold, there was no insurable interest.

On the basis that if there was no insurable interest, then the policy should have been cancelled "ab initio"..that is on the basis that the policy didnt and shouldnt have existed from the time of the sale of the house. In such circumstances, the premium should be returned.

Ravima's advise is the way to go. The OP should get writing to them. Best of luck.
 

twofor1

Registered User
Messages
1,544
I could understand this argument if the policy was for fire, theft etc, you need to have an insurable interest.

Is a mortgage protection policy not just a life insurance policy that declines in line with your mortgage and is assigned to the bank ?

If it’s a life insurance policy, then the policy holder has an insurable interest, his life, it’s not the property that’s insured.

As such why would the insurance company not have paid out in the event of a claim ?

 

Claimsman

Registered User
Messages
157
I could understand this argument if the policy was for fire, theft etc, you need to have an insurable interest.

Is a mortgage protection policy not just a life insurance policy that declines in line with your mortgage and is assigned to the bank ?

If it’s a life insurance policy, then the policy holder has an insurable interest, his life, it’s not the property that’s insured.

As such why would the insurance company not have paid out in the event of a claim ?

My reading of the OP is that he/she forgot to cancel the house policy. If it is the life policy that he/she is referring, then you are quite right, an insurable interest would still exist.
 

BOXtheFOX

Registered User
Messages
850
When I paid off my mortgage I rang the insurance company asking them to cancel the policy. I was asked if I would like to continue it as a normal life insurance policy. I am sure that your policy has technically changed in to a life policy but without mortgage attached?
It might be no harm to continue with this if you can afford it or want it because as you get older your life insurance premiums increase and to take out a new one might prove costly.
 

StevieC

Registered User
Messages
379
My reading of OP was it was a mortgage protection policy. The fact the house was sold and assignment gone is neither here not there, had there been a claim the benefit would have gone to the life assured estate.

Typically mortgage protection policies are done over a fixed term and a policy document is only supplied at inception. Given that the policy was paid for by direct debit there was no need for the life assurance company to contact the client about renewals. Its the clients responsibility to cancel the policy if they no longer require the cover.

Hence why I dont think a refund will be forthcoming.



www.CheaperLifeAssurance.ie
 

Ravima

Registered User
Messages
2,697
mis read by me = apologies.

It seems that it is mortgage protection/life assurance. probably no refund due.
 
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