Insurance cancellation charges and UTCCR 1999

[ncf355]

Hi all,

I have a dispute with an insurer that has charged £40 admin fee to cancel a monthly paid policy on a car I sold

Am I correct in thinking such charge is open to analysis at law in the same way as the old credit card charges? (it feels a VERY long time ago that I had my head deep in this area!)

If so, what is the actual part within UTCCR that would force them to have to prove their actual costs related to such a charge?

Thanks for your time

[nemesis45]

Re: Insurance cancellation charges and UTCCR 1999

I suspect the admin fee is part of the terms and conditions not really related to credit card charges etc.

nem

[des8]

Re: Insurance cancellation charges and UTCCR 1999

The admin fee is almost bound to be a charge levied by the broker/intermediary, and as Nemesis suggested it's nothing to do with the insurers as such and will be detailed in brokers terms and conditions.
As an ex broker I,m disgusted with the way they charge all these extra fees now a days

[ncf355]

Re: Insurance cancellation charges and UTCCR 1999

Surely they still have to prove that it costs them that amount to cancel my policy though?

As it's not an individually negotiated term?

[des8]

Re: Insurance cancellation charges and UTCCR 1999

Sorry, but no they don't have to prove their costs.
What they should do is provide the client with details of any fee (or the basis of calculating any fee) before the client incurs any liability to pay, or before the conclusion of the insurance contract, whichever is earlier (ICOBS 4.3.1R). This extends to all fees charged over the lifetime of the contract, but not to premiums or commissions.