We have a problem with an insurer who has revoked an insurance contract issued to us on the 16th of July. My partner, who wanted to transfer her non-claims bonus from Germany, signed up for a non-claims bonus insurance online on the basis that she would provide the UK insurance company with documentation from her German insurers. To make sure that this was ok, she had, prior to pressing the confirm button online, spoken to a sales representative over the phone (the conversation has been acknowledged as recorded by the insurance company).

We received the insurance policy yesterday, in which it was stated that the company would not recognise non-UK no claims bonuses. In confusion, my partner then called the company up, which in turn said that it would get back to us. The company representative called back today stating that my partner had been misinformed by the company and that a change in the law removed UK insurers' obligation to recognise non-UK no claims bonuses. The company representative apologised for the error made and said that the company would immediately return the fee paid and cancel the insurance. This has now left us without policy and the prospect of having to pay a much increased insurance premium. We would like your advice on whether the insurance company has the right to revoke the insurance contract agreed? If they did, what would you suggest us doing now?