My father, 88, recently drove his 2003 C180 Merc into a fence when parking. No other parties involved and no physical injuries. His insurers, Saga, wrote the car off.

I have been handling the insurance communication for him. I live in Lancashire and my parents live near Abersoch. The accident was 22nd July, I accepted the insurance settlement 3rd August and the documents and spare keys were posted to Saga 6th August. My parents are still waiting for the settlement cheque.

Saga sent a letter dated 6th August informing my father that unless he registered another vehicle with them before the 2nd September they would cancel the policy. If he acquired a vehicle after that date he would have to purchase a new policy. The policy was renewed 1st July 2012. A refund is not expected, but to cancel the policy after just two months on the grounds that the insured does not have a car, and less than 2 to 3 weeks after settling a claim. My question is "is this cancellation legitimate?"