Shocked at Towergate Mardon

[Pie Eater]

After nearly 23 years we sold the boat on Thursday 24th March and as a matter of courtesy and to save paperwork emailed the Bridgewater Canal Company, CRT, RCR and Towergate Mardon informing them of the sale and stating that I would not be renewing licences, breakdown cover and insurance when they ran out.

 

Yesterday I received a letter from Towergate Mardon as follows:-

 

We confirm that the policy has now been cancelled with effect from 24/03/2022 and we are now advising that there is a total charge amount due of £17.29, in which includes a £25.00 cancellation fee.

 

So much for politeness and giving advance notice, perhaps I shouldn't have told them and just let it run out.

 

I am not one for reading all the many pages of the Terms and Conditions and small print and wondered if anyone else had been caught out like this.

[Stilllearning]

£17 cancellation fee, including the £25? Ask them to show exactly where in their weasel wording this is justified and wait for an answer. It might be better if you do this on paper, through the post, as that will cost them more to reply.

Edited April 2, 2022 by Stilllearning
To make better sense

[Paul Charlton]

Standard practice in the car insurance world.

Edited April 2, 2022 by Paul Charlton

[Slim]

38 minutes ago, Stilllearning said:

£17 cancellation fee, including the £25? Ask them to show exactly where in their weasel wording this is justified and wait for an answer. It might be better if you do this on paper, through the post, as that will cost them more to reply.

I suspect they refunded some of the premium, about £7.70 then applied the £25 cancellation fee resulting in an outstanding charge of £17. 29.  

[Stilllearning]

1 minute ago, Slim said:

I suspect they refunded some of the premium, about £7.70 then applied the £25 cancellation fee resulting in an outstanding charge of £17. 29.  

That would explain it, yes.

[PaulD]

1 minute ago, Stilllearning said:

That would explain it, yes.

Did you cancel the insurance or did they? Worth reading the small print.

[Stilllearning]

3 minutes ago, PaulD said:

Did you cancel the insurance or did they? Worth reading the small print.

Not me gov.

 

[Momac]

Yes it would have been better to let the insurance lapse. Judging from the small refund sum the policy was near its end anyway?

 

 

 

[Ex Brummie]

Ignore the demand and see if they look to enforce it.

I had similar with car insurance and advised by phone I would not be renewing. I was told there would a small charge for the admin fee minus refund. I told them I would accept a 1p charge if they insisted or they could take me to court. 

I paid nothing, and have since reinsured another car with no penalty.

Edited April 2, 2022 by Ex Brummie

[MartinC]

1 hour ago, Pie Eater said:

After nearly 23 years we sold the boat on Thursday 24th March and as a matter of courtesy and to save paperwork emailed the Bridgewater Canal Company, CRT, RCR and Towergate Mardon informing them of the sale and stating that I would not be renewing licences, breakdown cover and insurance when they ran out.

 

Yesterday I received a letter from Towergate Mardon as follows:-

 

We confirm that the policy has now been cancelled with effect from 24/03/2022 and we are now advising that there is a total charge amount due of £17.29, in which includes a £25.00 cancellation fee.

 

So much for politeness and giving advance notice, perhaps I shouldn't have told them and just let it run out.

 

I am not one for reading all the many pages of the Terms and Conditions and small print and wondered if anyone else had been caught out like this.

Serves as a warning that NB insurance is just as much about policy wording as premium, bearing in mind that, in their Key Features document, there is no mention of this charge.

However, just to help, I suggest that you refer them to Section 82 of the Marine Insurance Act 1906 (which is still in force!) and ask them for a refund in accordance with the Act. That should ruffle  a few feathers.

[Naughty Cal]

Exactly why we just let our policy lapse when we sold NC. Wasn't worth the paperwork exercise or the cancellation fees.

[Tracy D'arth]

59 minutes ago, Naughty Cal said:

Exactly why we just let our policy lapse when we sold NC. Wasn't worth the paperwork exercise or the cancellation fees.

My experience when I cancelled on a boat insured with Craft Insure was totally different. Taking the months it was on cover off the sum I paid, they returned me almost 90% of the balance which I think is very fair.

 

 

[Naughty Cal]

2 minutes ago, Tracy D'arth said:

My experience when I cancelled on a boat insured with Craft Insure was totally different. Taking the months it was on cover off the sum I paid, they returned me almost 90% of the balance which I think is very fair.

 

 

Depends how long is left on the policy.

 

We had about 6 weeks left. Wasn't worth the hassle. 

[ditchcrawler]

I think someone posted something similar a few weeks ago 

 

Found it

 

 

Edited April 2, 2022 by ditchcrawler
Found the posting

[Tracy D'arth]

25 minutes ago, Naughty Cal said:

Depends how long is left on the policy.

 

We had about 6 weeks left. Wasn't worth the hassle. 

I did have 9 months left, so worth it.

[Pie Eater]

On 02/04/2022 at 10:52, PaulD said:

Did you cancel the insurance or did they? Worth reading the small print.

I just informed them that I had sold the boat and would not be renewing on 30.04.22.

[PaulD]

45 minutes ago, Pie Eater said:

I just informed them that I had sold the boat and would not be renewing on 30.04.22.

You could try telling them that you didn’t actually instruct them to cancel the policy. A point of law like this could keep solicitors and barristers happy for weeks.

[OldGoat]

Towergate used to be a nice, helpful outfit  - now they're  a tick-box firm.

I suspect the inland waterways market is (relatively) small and they don't want the hassle, so they dump the policies which aren't exactly the norm.

[Alan de Enfield]

27 minutes ago, PaulD said:

You could try telling them that you didn’t actually instruct them to cancel the policy. A point of law like this could keep solicitors and barristers happy for weeks.

 

But you cannot insure something you do not have 'an interest' in.

[David Mack]

1 minute ago, Alan de Enfield said:

 

But you cannot insure something you do not have 'an interest' in.

But surely you can continue to have a void policy running in your name. It will just never pay out.

[Alan de Enfield]

Just now, David Mack said:

But surely you can continue to have a void policy running in your name. It will just never pay out.

 

Surely a policy is live until it is cancelled - how would you void a policy and continue to pay for cover ?

 

But there will be two policies running covering the same boat, 

I looked at this when selling a boat and it was going to be a month ot so before they could pick it up, but they wanted to licence it so needed insurance. I found that having two policies on one item is very complicated and a quick summary (from Google) :

 

.. if you make a claim from two insurance providers, you can't claim for the full amount from each of them. Doing so is considered fraud, which is illegal and can land you with a criminal record

 

As insurance is these days, logged onto a central database any insurer can check to see if any other cover is provided for that item.

[Tony Brooks]

2 minutes ago, Alan de Enfield said:

Surely a policy is live until it is cancelled - how would you void a policy and continue to pay for cover ?

 

The OP would not void the policy. By stating the boat had been sold the policy becomes voidable which means that the contract is no longer enforceable. It would be Towergate Mardon who would void the policy if a claim occurred. That  is my understanding of contract law unless there is some insurance specific rules.

 

Also it is the individual who insures the boat against his loss, if he does not own the boat his loss would be zero so no payout.

 

I note all insurance companies are playing this game. It is just another way they milk the customer for more profit. Especially as the OP did not ask for a refund.

[Higgs]

8 minutes ago, Tony Brooks said:

I note all insurance companies are playing this game. It is just another way they milk the customer for more profit. Especially as the OP did not ask for a refund.

 

I stick those practices alongside the addition of 'administration' costs. It's that thing that no office is equipped for, and is highly unusual to need administration. About as unusual as a car needing wheels. 

 

 

Edited April 4, 2022 by Higgs

[David Mack]

21 hours ago, Alan de Enfield said:

Surely a policy is live until it is cancelled - how would you void a policy and continue to pay for cover ?

You void the policy when you sell the boat. You no longer have an insurable interest, so the policy becomes ineffective. And you don't continue to pay for cover - you have already paid a year's premium in advance. And at the end of that year, you just don't renew the policy.

[Alan de Enfield]

5 minutes ago, David Mack said:

And you don't continue to pay for cover - you have already paid a year's premium in advance

 

That is my point - you have paid 'up-front' so the policy is still in existence until its expiry date or, until cancelled.

 

Would it not be some sort of fraud, to take money (allbeit in advance) and then not provide cover, or refund the balance for the period when you sell the boat (say) 6 months later ?