Insurance Problem

[andy21aa]

Hi, I'm new here so be gentle.

I wonder if anyone can give me some advice. Last August I was unfortunate enough to be involved in a car accident, which was my fault. I informed my insurance company a received a letter from them saying they would settle any third party claims.

Now, four and a half months later, the third parties insurance has sent me a letter saying they intend on legal action against me in fourteen days for their claim against my insurance company because 'despite repeated applications, the claim remains unpaid'.

I have sent the letter to my insurance company by registered mail, but so far have heard nothing back.

Is this right? Can an insurance company refuse to pay a claim without reason and leave the policy holder to foot the bill? If so, what's the point of insurance?

I am prepared to name and shame if neccessary.

Thanks

[Celestine]

Re: Insurance Problem

How bizarre......Have you had any communication from your insurer.....ie. reasons not to cover you or is this the first that you have heard of any problem.

Did you ring them upon receipt of that letter. I know it would have been my first move.

I wouldn't stress too much at their threat of litigation. They are probably just trying to get some sort of movement in the claim if its all stalled due to inefficiency from your own insurers. It will drag on but if you're insurance is all in order (ie. no reason for you not to be covered such as being over the drink drive limit) then it should get resolved.........eventually.

You need get on the phone to your insurer and demand an immediate explanation for a start.

[TUTTSI]

Re: Insurance Problem

Hi Andy

If your insurers said they would settle this claim there must me a good reason that they have not done so. You must phone them and quote the claim number and speak if necessary to a supervisor and ask why the other party are threatening you with going legal, when they has agreed to pay the claim. You must have kept the letter that your Insurers sent you stating that they would pay the claim. I would tell them when you are on the phone that if you get sued by the third party you will hold them fully responsible for any losses that you may sustain.

It sounds like to me the only logical explanation that I can think of is that whoever at your insurers dealt with the third party Insurers has not tied up the claims reference number correctly. Or, quite simply the third party Insurers have quoted something incorrectly and your Insurers have not managed match up the claim.... either way it is a sham

Please name and shame them.....
and let us know what they have to say for themselves when you telephone.

[andy21aa]

Re: Insurance Problem

Thanks for the replies, the problem with phoning is that I gat connected to a call centre, I had loads of problems trying to renew my insurance with them, (obviously I lost any NCD) the call centre would tell me I didn't have any excess to pay then I'd later get a letter demanding money! So since then I have only communicated by letter.

Yes, I have all the letters they sent me, and to quote one from the 20 August:

'We will now proceed to settlement upon best possible terms which may involve settling any third party claim received in full.'

As far as the legal position with the insurance, the police attended the accident and were quite happy and I have a police incident number.

The insurance company is Saga, I would advise anyone to steer well clear.

However, I will phone them tomorrow, and let you know what they say (if, of course they can be believed)

[enaid]

Re: Insurance Problem

Blimey andy i have just got my dad insured with these he is 83 and i thought it would save him money and give him peace of mind. Please if not through this thread, will you keep me informed of their downside. Enaid x

[TUTTSI]

Re: Insurance Problem

Saga is probably underwritten by through one of the bigger insurers. ie Norwich Union or such like.

I fully understand how you feel about call centres, but it is most important that you do phone ASAP and get through to a either supervisor or claims manger and get to the bottom of this SAGA!

[Helford]

Re: Insurance Problem

From the Saga website

"Saga Motor Insurance is underwritten by Saga Insurance Company Ltd."

As Tuttsi says, give them a call and escalate the Complaint if there is no confirmation of dealing. Ask to speak with their Compliance Officer.

From the FSA website their registered address is as follows, you might want to send a Special Delivery letter:-

The Saga Building
Middelburg Square
Folkestone
Kent
CT20 1AZ

[TUTTSI]

Re: Insurance Problem

Another thought has crossed my mind, if you do not get anywhere with telephoning which I do hope that you do. Are you by any chance a member of the AA or RAC as they have a Legal Advice help line. Even sometimes your household insurers have a legal helpline also which you could at last resort get some Legal Advice.

[andy21aa]

Re: Insurance Problem

Right, next installment of the saga.

I phoned them this morning and here's what they say has happened.
Apparently this claim is for the third parties personal injury (which of course I didn't know, I assumed it was vehicle damage, there were no injuries at the accident), and Saga are disputing the amount they are claiming (fair play), and to which end they have asked for more information from the third party insurance (Privilege Insurance btw), so no settlement has been agreed. Buck passing at it's best.

So it appears one insurance company is lying to me, and even more amazingly one of them is telling the truth!

Now it would seem Privilege have decided that due process doesn't apply to them and have issued threatening letters claiming (what they think is) the full amount.

Hopefully the phone call will encourage them to kiss and make up and start talking to each other again.

I have asked Saga to put this in writing to me, and of course, only the 'System' is allowed to write letters, so a note has been made on the 'System' to send me a letter, obviously the 'System' has confiscated everyone's pens. I won't be holding my breath though.


Thanks again for the replies.

[rant]
Just a footnote to say that I'm not really the worrying kind, but I can imagine the stress and anguish this sort of thing could cause to someone of a little more sensitive disposition. Just makes me so angry that these faceless bureaucrats can sit in their ivory towers and blindly mess with peoples lives.
[/rant]

[TUTTSI]

Re: Insurance Problem

Hi Andy
lets hope on the strength of your telephone call to day you would have made both sides kiss and make up. I do not think that the other insurers should have written to you in the vein that they did and I am sure if they continue to harrass you there must be the Insurance Onbudsman that will look into it on your behalf.

I am keeping my fingers crosssed that everything will be OKAY.

DS

[Helford]

Re: Insurance Problem

Andy,

If Priviledge is the third party insurance company, is it actually Priviledge who are making the claim for third party injuries? Normally they would only pursue a claim for the vehicle damage. You mentioned that there were no apparent injuries initially, yet a claim has now been made - I have to say I see this all the time and 9 times out of ten, nothing comes of it. Normally it is the 'No win, No fee' crowd behind these claims, after all the other driver can only claim under their own insurance for vehicle/property damage. Even if a passenger in that car was injured, they could only claim for injuries if their driver was liable.

Personally, I wouldn't be too worried about being named in an action, Bottom line, your insurance company covers your legal liability (Courts find you liable the insurance pays, the courts find you not liable, they don't).

Just make sure you forward any documents to your insurer direct without answering.

A classic case of 'Put up or shut up!'

H

[andy21aa]

Re: Insurance Problem

Andy,

If Priviledge is the third party insurance company, is it actually Priviledge who are making the claim for third party injuries? Normally they would only pursue a claim for the vehicle damage. You mentioned that there were no apparent injuries initially, yet a claim has now been made

Just make sure you forward any documents to your insurer direct without answering.

H

Hiya H,

Yep, definitely Privilege on the letterhead, although there was no mention of personal injury in their letter, and I thought almost £4000 was a bit excessive, since everyone walked away from the accident.

Saga said to forward everything to them, so that's what I shall do.