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Why do insurers act like they do?
Dear Honest John
To say I don't really like insurers is an understatement. We pay them to take on our risks then they'll find any and every opportunity to trip us up and avoid paying out when the needs arises. They trick us into doubling up on cover e.g. mobile phone/home insurance or both husband and wife having separate life assurance policies capable of paying off mortgage twice over.
Anyway, I'd be interested in your comments on the following motor vehicle insurance related issues:
1 - Why do insurers insist on asking us tricky and embarrassing questions regarding the exact details of our claims history when they can go straight to an insurance database/ bureau and get all our history (admin charges added to policy) and avoid confusion, deliberate or reckless non-disclosure scenarios.
2- Same as above but this time for points and driving offences. We give permission for them to approach DVLA directly to get all our points and convictions again avoiding any non-disclosure scenarios, with any admin charges added to our policy.
3- If my points on driving license are expired/spent (e.g. older than 5 years for speeding) then I do not need to disclose them to an insurer under rehabilitation of offenders act 197whatever. Right?
4- Say if I get into a non-disclosure argument for not declaring a speeding offence/points why can they insurer refuse to pay out on claim that has nothing whatsoever to do with speeding. Say, a 2mph shunt in a car park?
To say I don't really like insurers is an understatement. We pay them to take on our risks then they'll find any and every opportunity to trip us up and avoid paying out when the needs arises. They trick us into doubling up on cover e.g. mobile phone/home insurance or both husband and wife having separate life assurance policies capable of paying off mortgage twice over.
Anyway, I'd be interested in your comments on the following motor vehicle insurance related issues:
1 - Why do insurers insist on asking us tricky and embarrassing questions regarding the exact details of our claims history when they can go straight to an insurance database/ bureau and get all our history (admin charges added to policy) and avoid confusion, deliberate or reckless non-disclosure scenarios.
2- Same as above but this time for points and driving offences. We give permission for them to approach DVLA directly to get all our points and convictions again avoiding any non-disclosure scenarios, with any admin charges added to our policy.
3- If my points on driving license are expired/spent (e.g. older than 5 years for speeding) then I do not need to disclose them to an insurer under rehabilitation of offenders act 197whatever. Right?
4- Say if I get into a non-disclosure argument for not declaring a speeding offence/points why can they insurer refuse to pay out on claim that has nothing whatsoever to do with speeding. Say, a 2mph shunt in a car park?
Asked on 10 September 2012 by Gossy68
Answered by
Honest John
The idea of these Private Equity Fund owned insurers is to attract business with low premiums, then raise them over issues or refuse comprehensive payouts over non-disclosures that they could easily have checked up on. Why do insurers not keep a central database of claims and NCDs? Because they can make more money by not doing so.
Tags:
insurance
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