Fault insurance claim - undeclared points

[A-ron]

Hi all, currently looking advice and opinions for a family friend.

Long story short, a family friend was involved recently in a RTC (their fault) and called their insurer to report the RTC in question.

The call handler asked as part of the process if they had any points to which the person at fault immediately declared they had received three points for speeding in June of this year and I guess this is where things get a little more complicated...

It has transpired that said family friend in fact got the points in April but due to waiting on a new license/sending off etc. and receiving their license back in June of this year, they foolishly assumed the points applied to June when they received their license back from the DVA. To makes matters worse they renewed their policy in May and didn't think to declare the points.

Having known this person my whole life and knowing that this indeed was a genuine oversight, where do they stand? They are worried sick at the thought of possible repercussions through what is indeed a genuine mistake.

 

[svensktoppen]

They knew about the points when renewing earlier in the year but didn't declare?

And then did declare when making a claim later in the year?

Depends on insurer policy. Undeclared points could be trouble obviously. Won't be much help to your friend but hard to say more than that.

 

[Mark_C]

I'd say at the very least theyll have their insurance cancelled on the spot, happened my brother when he didn't tell them (somehow he thought he didn't need to) someone reversed into his car and put it through their insurance to fix it for him

 

[A-ron]

Yes, they knew they had been caught speeding but thought the points related to when they were put on their license in June instead of when the offence happened, in April (silly I know).

They told me that when they checked their policy it said to declare at the time of renewal for the previous twelve months so they assumed because they had already renewed in May, were under the impression the points related to June that they would inform the insurance company next renewal May 2020. From my understanding they were then told when reported the accident, to update their policy to show the points, which they did to June but it was in fact April when I explained today and the process is still pending.

I guess I just feel for them knowing there is probably little goodwill to genuine mistakes when insurance is concerned but also understand and appreciate it would then be taken advantage of by folk chancing their arm.

If it were to turn sour can the Financial Ombudsman be of any use in these instances? Or is it a case of up **** creek without a paddle?

 

[Coog]

At the very least the 3rd party will be covered.

I always thought they asked about any pending points at renewal too. Maybe they mentioned those when they were renewing?

I honestly can't see it being material enough to have a policy retrospectively cancelled, 3 points doesn't even normally make the policy price change... but in saying that the insurance company might be looking at every angle to get out of paying. It might be worth speaking to a professional depending on what the insurance co does eg @NeilMcG

 

[svensktoppen]

They don't actually ask for points as such, they ask for any offences committed.

For example, you need to declare even if you got a course instead of points, and it's then up to the insurer if that affects the premium or not. Some don't care about courses, some allow you three points, some nail you regardless, etc.

Yes, sounds harsh if they would lose cover over something this trivial. Up to the policy of the insurer. They're not charities...

Don't panic just yet, see what happens next. If it goes against them, then get legal advice before talking to the insurer again.

 

[purplea4T]

They don't actually ask for points as such, they ask for any offences committed.

Yes, sounds harsh if they would lose cover over something this trivial. Up to the policy of the insurer. They're not charities...

Don't panic just yet, see what happens next. If it goes against them, then get legal advice before talking to the insurer again.

No, they ask for convictions, not offences.

 

[AlpineF30]

My cousin wiped out a phone box years ago and had undeclared points when the insurance claim was put through.

Needless to say he had to take a loan to pay BT for a new phone box as the insurance walked away.

 

[bill]

I always thought you had to tell them about points.
Dont know but i know insurance companies they will try everything to not have to pay out.

At the start of June 2013 i was in a non fault T boned the guy didnt even look before he slammed into me.
My Doc had said to me in May to tell DVA about a medical condition my licence was up for renewal 29th of August.
I had decided to wait until they had sent me the letter for renewal and send in a medical form then because i had a holiday in Orlando in July and needed my Licence.

The other party insurance company asked to see my medical history because my back was hurt but i told them i had back trouble from 2003 and they found out my Doc had said to report to DVA about another illness.

Lucky my Doc and Consultant never said you should not drive they only said report it to DVA.

 

[Nicky Glanza]

my only advice would be to contact a solicitor who can deal with car insurance claims etc, everything your friends are saying on the phone will be recorded and possibly used against them,

I know of two people who done exactly what you have stated above and both where lucky enough that the insurance company had to honour the certificate but charged them the difference of what the policy would have been if they had declare the points.

I would still seek legal advice even if it costs as one word or phrase said wrongly or admission of guilt will allow them to walk away

 

[pablo]

If you get points midway through the year do you declare straight away?

I never have, waiting for renewal to do it, but some think you need to do it as soon as you get them

 

[svensktoppen]

Yes, that one is a bit borderline. I think you technically are supposed to inform them of any change in circumstances straight away, whatever it might be.

I don't think points mid way can affect your current premium but I don't know that for a fact. Probably down to the policy of each insurer again...

By the way, the way you phrased that makes it look like you get points all the time

 

[m00k]

If you get points midway through the year do you declare straight away?

I never have, waiting for renewal to do it, but some think you need to do it as soon as you get them

Depends on the company but yeah need to disclose any change so could have you that way

 

['96dc2]

I need to declare my 12 points then??

 

[A-ron]

I think this may be a hard lesson for them, in future to be more diligent when it comes to insurance and contracts in general.

On the brighter side of things, I don't believe anyone was injured and mistakes happen.

On the subject of declaration of points, from what I understand some insurers ask you to inform them immediately and others allow you to inform them at renewal.

 

[Chris666]

I need to declare my 12 points then??

Bad at scrabble?

 

[stevieturbo]

If you get points midway through the year do you declare straight away?

I never have, waiting for renewal to do it, but some think you need to do it as soon as you get them

You're supposed to declare immediately.

Although insurance scum would try and wriggle out of any legit claim, even if there was a genuine oversight such as this. A good solicitor would soon have them sorted though

 

[impact]

Wife worked in insurance for years in the past and says you only need to declare points at renewal, quick google of some insurance policies confirms this is still the case. Would need to read T&Cs of your own insurance to confirm this is case for each.
Only need to inform them right away if license revoked or suspended or if your details on license changes.

Insurance company should also still pay out in OP case unless the points would have stopped the company quoting in first place with likely additional cost of difference points might have made. All depends on company though and same as any other product you get what you pay for with reputable company.

 

[Mark_C]

If you get points midway through the year do you declare straight away?

I never have, waiting for renewal to do it, but some think you need to do it as soon as you get them

Wife renewed her insurance today and I got her to ask this exact question - they said they need to know straight away

 

[FM155]

What if you have no points on your licence because they are on a ghost licence and you never received any paperwork other than the ticket which had to be sent off with your licence so you don't have that either? Asking for a friend..

 

[svensktoppen]

Lol, that sounds like a winner for your "friend"

 

[NeilMcG]

If the insurance company refuse to indemnify based on your friend not declaring the 3 penalty points I would immediately report them to the insurance ombudsman. Give me a shout if your friend needs help with a letter to the Ombudsman or just some advice generally.

 

[avo5021]

No, they ask for convictions, not offences.

This is the bit I don’t agree with, yes declare all convictions but a Speed Awareness Course is not a conviction it’s an alternative disposal to a conviction so I don’t think it should be declared !!

 

[Ghisallo]

What if you have no points on your licence because they are on a ghost licence and you never received any paperwork other than the ticket which had to be sent off with your licence so you don't have that either? Asking for a friend..

My wife had 9 points on a ghost licence but still declared the points to insurers. Her car insurance didn’t go up though - it went down year on year. She spent 3 years driving like a nun.

 

[zafturbo]

How long is it you declare your points for ,is it 3 or 5 years