Insurane takes away no claims

[BeavisJem 0]

Got a bit of a problem, would like to ask on behalf of my brother. He owns a Mazda 626 nothing fancy and had 4 years no claims and he is 29. His previous year’s insurance with Tesco's was £295.

 

Anyway about 2 months ago a cyclist hit his car and fell onto the floor knocking him self unconscious. He wasn’t wearing a helmet. He came round and went to the hospital for a check up. My brother was questioned about the incident and was told that everything was ok and it wasn't his fault as the cyclist cut across him in heavy traffice and got his pedal caught under the wheel arch.

 

Anyways my brother was told to tell the insurance company that there was an accident but it wasn’t his fault and there is no claim.

 

All was fine until he got his renewal quote. £500

 

With no letter, contact or anything they removed 2 years of his no claims and thus put his premium up.

 

My brother contacted Tesco and they said because this might result in a personal injury claim they have deducted 2 years no claim just in case and would refund any extra money after the 3 year period for personal claims.

 

This seems wrong. First they took the no claims with out any warning, letter or telephone call. There is no police report from the cyclist for a claim, and now my brother would be tied in with the insurance company for 3 years just to get his money bad.

 

Can they do this?

[Walesy 0]

Moved to Insurance

[ZippyVR6 0]

get him to read the policy document, if he is still in doubt they can do this,

 

Phone up Tesco and say that he feels that they have acted unfairly, and as such he would like information about how he can report this to the insurance ombudsman. Should get things moving.

[nocrap 0]

Is there a government regulator for insurance companies? like Oftel is for telephone companies?

[Supercharged 2]

Yep, mentioning the Ombudsman usually gets things moving!

[bristolbaron 10]

that doesnt sound right..

[keystarG60 0]

Hi mate. I'm a motor claims handler and can tell you this is standard practice.

 

If an insurance company is notified of an accident where there is potential for claim from a third party insurer (in this case, for personal injury), they are obliged to leave the claim open (usually for 6 months) just in case they receive allegations from the pedestrian, their solicitors etc.

 

After this period, the claim can be closed as a nonfault claim and your brothers no claims discount would be reinstated. Under these circumstances, your brother would receive a refund , backdated, for any additional premium he had paid since his renewal.

[BeavisJem 0]

Thank you