Case study – non-payment of insurance premium
A home insurance policy was incepted on 22 December 2014. Complainants home suffered fire damage on 17 July 2016. The provider cancelled the home insurance policy on 26 April 2016 due to non-payment of insurance premium. The complainant states that the provider did not make them aware of the cancellation of the insurance policy, and claims that the provider never notified the complainant of the cancellation of the insurance policy for non-payment of insurance premium. The provider insists they had problems with both a Ms C and a Ms N with regards to whether they were insured or not. The complainant insists both Ms. C and Mr. N said the complainant would be insured but then said otherwise. The complainant states that none of the warning letters for non-payment of insurance premium from the insurer were received.
The complainant sets out that both they and their family were homeless for 4 months due to the fault of the provider. The complainant seeks for the provider to reinstate his home insurance policy and asks for the funds to correctly get their house back in order.
The provider states payment made for insurance was a standalone payment and came out separately as a direct debit. The provider states that the complainant had his mortgage for a number of years before getting insurance from the provider.
The provider states that it issued the complainant with two direct-debit default letters after the direct debit about of €26.37 came back unpaid a second time. The provider issued a letter to the complainant confirming that if they did not pay the sum by 26 April 2016 then the provider would invoke the cancellation clause of the home insurance policy. The provider wrote to the complainant again on 3 May to advise that the home insurance policy had been cancelled. The complainant dealt with bank representatives on both 4th August and 11th August. These calls were not recorded but notes left confirm that the provider could not reinstate cover. The provider notes that the complainant says he never received any of the four letters sent, however no other letter in the past were left undelivered to the address.
Letters came back from the complainant’s bank stating that the premium was not paid due to insufficient funds. The complainant insists that the provider did not contact him with regards to the cancellation of his household policy or that they never received any letters. The provider provides evidence that multiple letters were sent to the complainant regarding the possible cancellation of his policy, and when his policy was cancelled for non-payment of insurance premium.
The complainant also insisted that he believed the insurance premium was included as part of the mortgage payment, however letters from the provider show that this wasn’t the case. The call about which the complainant states the provider stated that an assessor would be out to look at the house has been examined, and the provider states in said call that the agent confirmed the insurance policy had been cancelled. Recordings provide that the agents of the provider never stated that the policy would be reinstated should be pay the outstanding balance of the annual premium, but that they may apply for a new home insurance policy.
This complaint was not upheld due to the reasons outlined above.