I have been charged to cancel a policy (one which wouldn't even have come into effect for 23 days!). Not only that, but I needed to cancel the policy because I'd inadvertently made a mistake when I took it out (only yesterday).
Having noticed my mistake this morning, and not wishing to clog up the company's telephone lines if I could avoid it, I requoted myself online on their own website. I got the cover sorted (correctly this time) with all extras that I required added in. In fact, this is a more expensive policy - but that is neither here nor there.
My problem is that I wasn't able to then close the first policy online.
In this day & age, why?
So, having tried to avoid calling and running through all this administration over the telephone in a long-drawn-out call with a member of their staff, I was now in a position where I had no choice but to call them. At least it would be a quick, simple & painless call - so no one would be too inconvenienced (or so I thought).
Anyway, having gone through their front-end recorded telephone system (which itself plea with callers for them not to call less their issues are urgent or absolutely necessary - or something similar) I spoke with a chap in their offices.
I very briefly explained the situation, and that I had corrected the issue for myself through their own website - and that I was now satisfied that I have the cover I need in place. My request was that he close/cancel the policy in which I made an error (yesterday). I thought that this would not present any problem at all - this being for a number of reasons:
A) The policy wasn't due to commence covering me until 31 May 2020.
B) I was remaining with their insurance company.
C) There was literally no level of admin effort required of their staff - beyond this single (no more than 5-minute) telephone call.
Anyway, much disappointment followed.
Their staff member informed me that he would be charging me a £26 cancellation fee. I was a little shocked. I asked why and restated that I had remained with their company - and that the policy was not due to start for a number of weeks. I was told that they have a right to charge their cancellation fee (£26) as an administration fee. And I was told that I should have called to have a requote against the policy over the telephone. I explained that I was trying to avoid calling and to avoid being an administrative burden. I asked whether he had any discretion over the charge - he didn't answer that question.
Reluctantly, and without much I could do about the situation, I had to accept a refund minus the £26 admin cancellation fee. It cannot be a bad place to work if the staff are being paid £26 for each 5-minute period worked. That was the only administration required for their business with me - one 5-minute call to cancel a policy which was yet to be enacted.
There was no cognisance of the fact that:
A) I remained with them.
B) I was acting as their front-end telephone system is requesting.
C) The admin fee is in no way (at all) reflective of the actual cost for their staff member's time in speaking with me about this.
If I had called to get a requote and amendment to my policy, I would have taken far more of the staff member's time. And, thinking about it, I would likely have had an equally as oppressive, unfair and unreasonable admin fee levied against me at that point. At least I would have got my money's worth though.
Frankly, I think it's despicable.
I think it's a very poor way to make money; money made from those doing their best to be a good sort of customer. I mean, I'm sorting my insurance weeks before it is due, and I am doing all the leg work myself. I could have disregarded the burden the staff are under during this time of national emergency and simply have called regardless. Amoral and despicable. They ought to feel utterly ashamed of themselves.
Reviewed on: 9th May 2020
