A friend of mine took out a home insurance policy last year (sep-06). His tank in the airing cupboard has now burst and his house is flooded. He contacted his insurance company and they informed him that the direct debit had been cancelled in January 07.
He lost his debit card in December and the bank refused to pay the insurance company and cancelled the DD as they had the incorrect card details (from his lost card).
What is the best thing for him to do now?
Is it the banks fault for cancelling the DD or the insurances for not requesting an alternative payment method - no correspondance has been received from the bank or the ins company?
2007-02-20 21:23:32 · 9 answers · asked by ♥♥J3NN1F3R♥♥ 2 in Business & Finance ➔ Insurance
you sure the dd was on the card not the account?
he needs to check that first he should have a copy of the agreement, if it was on the account that would be the banks fault, but in cases where this happens the insurance company would normally write to you asking if the dd was canceled by mistake or if he would like to make an alternative method of payment.
tell him to check with the bank about the cancellation and did they cancell anything else if he can get the bank to say it's there fault he then needs to speak to the insurance company about reinstating the policy and paying whats outstanding,
2007-02-20 21:33:07 · answer #1 · answered by Mrs.H 5 · 0⤊ 0⤋
Your friend needs proper legal advice on this - however your friend must have received a letter from the insurance provider stating that payment had not been received and that cover would be stopped?
If the policy has not been paid then the insurance company have every right to withdraw cover - however it sounds like the bank may have been at fault and this is where your friend needs legal advice - your email is a bit confusing though - because the direct debit would come from the account not the card itself and therefore unless there were insufficient funds there is no reason why the bank should cancel it?
2007-02-20 21:54:22 · answer #2 · answered by Boo 3 · 0⤊ 0⤋
In exchange for a few conditions the insurance companys agrees to cover insured perils written in the policy. Generally the only conditions the insured (your friend) are subject to are:
1. Payment of premium
2. Prompt reporting of all losses/claims
3. No Abandonment (if home burns you cant take the money and run)
The rest can vary by insurance company but item one is the one that has no grey area. State law also has mandates of notification. The insurance company must notify within x amount of days of any cancelation of policy or non renewal. As long as the address on file was valid and they saved records of mailing cancel notices that is generally all they need to exit the contract and comply with state insurance laws.
If the bank failed to pay the bill due to negligence, it might be possible to sue the bank for damages.
It might also be possible to sue the manufacturer of the "tank in the airing cupboard" for defects
2007-02-20 21:46:07 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It could fall on the bank , but ultimately , he is responsible for making sure all bills get paid..also make sure the homeowners insurance covers water damage or flooding in that situation , it is not included automatically with most policies , if he reported the card as lost or stolen the bank may have froze his account to prevent illegal activity on or against his account , he should have clarified to the bank not to freeze any automatic withdrawals or debits , that are already set up..sometimes you have to tell them , they can not read your mind in that situation , normally they freeze all incoming ,and outgoing transactions until authorized by account holder ((after account is frozen)) to resume payments ..check the fine print on policy regarding "reporting lost or stolen debit cards "
2007-02-20 21:44:44 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Probably down to his bank - a direct debit comes directly form the account of the holder - they should not have cancelled the direct debit without his authorisation - tell him to ask the bank (in writing giving 7 days to reply) to show him their signed and authorised copy of his cancellation request. If they can't supply it - then it's time for him to start jumping up and down and giving the Bank what for!
2007-02-20 21:32:21 · answer #5 · answered by jamand 7 · 0⤊ 0⤋
Is there a mortgage on the house? Most times a mortgage company would be notified of cancellation and they will issue a policy on the property. I would call the mortgage company and ask if that has been done. If not, a lawyer may be needed.
2007-02-21 00:55:18 · answer #6 · answered by Anonymous · 0⤊ 0⤋
A direct debit isn't set up against your debit card, it's directly through your bank account so this shouldn't have made a difference to his direct debits if he lost his card
2007-02-20 21:28:35 · answer #7 · answered by ChocLover 7 · 1⤊ 0⤋
approach of removal: DO YOU very own your individual enterprise -----> specific you do no longer very own your individual enterprise ------> NO And in case you very own your individual enterprise, basically the element this is enterprise proper is deductible
2016-10-02 11:58:30 · answer #8 · answered by missildine 4 · 0⤊ 0⤋
thats y pls take insurance policy in good banks...................
i hope this will help u.....
2007-02-20 23:29:06 · answer #9 · answered by ravi C 2 · 0⤊ 3⤋