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Accident Not Settled, Can i use my no claims bonus meanwhile?

Last post Wed, Jun 10 2009, 11:40 AM by huckster. 6 replies.
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  •  Wed, Jun 10 2009, 11:40 AM

    Re: Accident Not Settled, Can i use my no claims bonus meanwhile?

    Just phone them and find out about the present position. If you then keep chasing this up every 2 weeks, someone will get there finger out and make sure the recovery is made and your claim closed. Insurers don't set out to rip you off by acting in an unfair way. You will appreciate that there are thousands of claims pending at any one time and Insurers will chase matters up in line with their normal diary process, without intervention by you. But they will chase matters even more if you hassle them. I know from experience that Insurance staff work much harder for those customers that are more demanding.

    Give then stick in a nice way and you should be ok for your renewal if the claim is straightforward. The renewals are usually issued about 28 days ahead of the renewal date.

    • Post Points: 5
  •  Wed, Jun 10 2009, 11:20 AM

    Re: Accident Not Settled, Can i use my no claims bonus meanwhile?

    so this basically means i got to stick with my current insurance company and they will basically rip me off on renewing my insurance if this claim is not settled by the time my renewal comes around?
    • Post Points: 20
  •  Wed, Jun 10 2009, 10:19 AM

    Re: Accident Not Settled, Can i use my no claims bonus meanwhile?

    Coyote you are right that Insurers will mostly reduce NCD at renewal if they have paid out, but the claim is pending while a full recovery is made. I did say I might be wrong and that a phone call should be made to Insurers to check current position and impact on renewal. The system i used was not a sophisticated as some computers in use today and perhaps regulation has brought about upgrades. Even the ABI only says that sometimes the NCD will be reduced for pending claims at renewal. From memory we did review individual renewals with pending claims and did not reduce NCD if claim likely to be non fault.

    My experience was however that Insurers are inconsistent with this, mainly due to the accuracy of their records at the time renewals are processed. It can take some time for recovery details to be received and updating records/closing claims off was not always given priority. This can be unfair to policyholders as 1) premium may increase, 2) NCD proof cannot be provided and 3) pending status will stop shopping around.

    I don't think Insurers deliberately delay entering the claims recovery details to maintain retention levels. This could lead to action being taken by regulators. All I would say is that if I had an outstanding claim, I would be phoning the Insurers regularly to make sure they were chasing for recovery and had up to date records.

    • Post Points: 20
  •  Tue, Jun 09 2009, 11:01 PM

    Re: Accident Not Settled, Can i use my no claims bonus meanwhile?

    huckster:

    From memory, the system I used did not reduce the NCD for pending claims at renewal. The NCD is only reduced once the claim was settled as a fault claim. I think this is right, as you can only imagine the number of complaints a company would receive if NCD was reduced and only reinstated when non fault entered. To suddenly have to pay a higher premium just because a non fault claim is in process, would not be acceptable to most people. I might be wrong, which is why I suggest you phone your Insurers.

    Is this true? If so, it must have been implemented at 1700 yesterday as I've never heard of that before. What system were you using?!?

    RE Renewal; they would be more inclined to reduce the no claims discount as their payout is concerned. What companies do you know that do not increase premium/decrease NCD allowance at renewal with a claim pending????

    No insurance company in the UK will release no claims bonus or state 'No claims bonus allowed' whilst a claim is pending. It never has in the history of NCD and never will. It will, hopefully, be a speedier process to settle but as your post goes on to point out other liabilities must be considered and the reserve may only be estimated.

    • Post Points: 20
  •  Tue, Jun 09 2009, 10:20 PM

    Re: Accident Not Settled, Can i use my no claims bonus meanwhile?

    Hi

    First of all, no other Insurance company will give you a new quote when you have a pending claim. Ask your current insurer what they will do with your NCD if claim still pending at renewal. Also tell them to get a move on with updating your records. The system for Insurers deciding re fault/non fault and updating records used to be slow as not given the highest priority . From memory, the system I used did not reduce the NCD for pending claims at renewal. The NCD is only reduced once the claim was settled as a fault claim. I think this is right, as you can only imagine the number of complaints a company would receive if NCD was reduced and only reinstated when non fault entered. To suddenly have to pay a higher premium just because a non fault claim is in process, would not be acceptable to most people. I might be wrong, which is why I suggest you phone your Insurers.

    A word of warning. If there is any personal injury/liability involved, claims can be pending for years and you can be stuck with the same company for years. My sister has been in this situation for about 4 years as the other parties Insurers are having difficult getting closure from their policyholder. Their policyholder is pretending to have long term injuries which no medical report has substantiated leading to an impass. My sister may have to wait for the statute of limitation( 6 or 7 years) to kick in, before she can shop around. This is a really silly situation which I hope does not apply to you.

    • Post Points: 20
  •  Tue, Jun 09 2009, 9:45 PM

    Re: Accident Not Settled, Can i use my no claims bonus meanwhile?

    No. Case isn't closed therefore it's still pending.
    • Post Points: 5
  •  Tue, Jun 09 2009, 2:06 PM

    Accident Not Settled, Can i use my no claims bonus meanwhile?

    Had an accident back in november and my iinsurance runs out in october. i should still be able to use my ncb beause the accident is still not settled as being my fault. If it is still not settled by the time my renewal comes around will my insurance use the ncb to give me a renewal quote? will i get my no claims bonus proof if the accident is still not settled by the time of the renewal? im thinking of changing insurance companies too

    • Post Points: 35