Premium increase after Claim

[DirectDevil]

In a letter to my Father detailing their reasons for retrospectively cancelling his NCB, the Insurers say nothing about it being due to him not notifying the Event. A number of posters seem to be of the opinion that because someone is involved in an accident which may give rise to a Claim, The Insurance Company is entitled to cancel their NCB before a Claim is actually made. This is unjust in my view as the possibility exists that a Claim may never be made. I would also wonder about the legality of it. But then of course Insurance Companies seem to be a law onto themselves.

If you notify a claim the facts of which suggest reasonably that there is a prospect of a claim that will incur a financial liability it is perfectly reasonable to stop or step back the NCB.

Consider the converse scenario where a claim is notified but a third party claim is not yet lodged and the NCB is allowed. If a claim then arises that has probably worked to the disadvantage of the insurer as they will have effectively failed to stop or step back the NCB when they could and should have.

"No claim" would not always seem to mean no claim intimated against the policyholder.

 

[tigershark]

If you notify a claim the facts of which suggest reasonably that there is a prospect of a claim that will incur a financial liability it is perfectly reasonable to stop or step back the NCB.

Consider the converse scenario where a claim is notified but a third party claim is not yet lodged and the NCB is allowed. If a claim then arises that has probably worked to the disadvantage of the insurer as they will have effectively failed to stop or step back the NCB when they could and should have.

"No claim" would not always seem to mean no claim intimated against the policyholder.

And what would happen if the NCB is stopped and there never is a claim? Would the insurance company refund the extra paid by the policy holder? Probably just make up some excuse not to I would imagine

 

[Leo]

In a letter to my Father detailing their reasons for retrospectively cancelling his NCB...

What were those reasons and do you consider them reasonable?

 

[Jimbobp]

And what would happen if the NCB is stopped and there never is a claim? Would the insurance company refund the extra paid by the policy holder? Probably just make up some excuse not to I would imagine

In our experience, if a claim isn't paid out and a bonus has been suspended, generally the insurer reinstates the no claim bonus and pays back any additional premium that was taken (mind you, they often need to be 'reminded')