Insurance Cancellation Scam

[Proceed]

I paid £81 premium including IPT on July 1st for motorcycle insurance.
Today I cancelled the insurance having sold the bike
Expecting a pisspotically small rebate I was surprised when told I would have to pay a further £41 to cancel after my rebate. (figures were not disclosed) but according to the policy I should be due 37.5% = £30.37, their terms say they will take their £55 fees out of any rebate.
So how can they charge me £41??

[des8]

Because maths is not one of their strong points.

Presumably this is a broker charging an administration fee for the cancellation.
Tell them where they've gone wrong, and that if they don't agree you will complain to FOS (https://www.financial-ombudsman.org.uk/)

[Proceed]

Why thank you, I should add when they mentioned this exorbitant charge I instructed them to leave the insurance in place and they refused. I don't see why this could be the case. I would have thought that as insurance is no more than a bet against the odds surely I can insure anything I wish; including (theoretically) the moon crashing into Uranus although making a claim could be difficult matter. Is there some law governing keeping a policy live?

[Aukey]

I think it's to do with the bike being insured twice when the next person does insure it, if it's involved in an accident then they could claim off of you.

[des8]

Hmm...don't like defining insurance as a form of betting; rather it is risk management!

you can only insure against loss where you have an insurable risk, so no you can't insure against the moon colliding with Uranus although Betfred might well be willing to take your money!

Regarding the cancellation, if the actual insurers have already been advised to cancel you will not have the policy reinstated as there is no longer any insurable interest. If they are not aware of the disposal of the bike and of your order to cancel there is no reason just not to let the policy lapse on renewal..

[Proceed]

Thanks for your input guys. I did instruct them to leave it as a live policy and to expire naturally but they refused my instruction intent on claiming their fee [there could never be an policy claim because the bike had been exported to Poland and I was the only insured rider] ah well, I suspect they would have a job getting the money as my card has been replaced and I moved also. Would they really bother for £41, probably not... but???

[des8]

Whether or not they will pursue you for £41 I cannot guess.
However if you have moved, and they do not know your new address, they might initiate a court claim and obtain a CCJ.
Not difficult to trace people and then enforce it.
You would then have the problem of a ruined credit record and the cost of a set aside and defence.

I would make complaint to FOS, but it is your choice

[Proceed]

Cheers DES8, I prpbably came across as a bit flippant there, you're quite right of course. Its not about the money in this instance, part of me says just pay and write it off but I hate being screwed on principal.