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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Can insurance brokers charge an additional premium and fee

Resolved Question:

Can insurance brokers charge an additional premium and fee on a policy which has been renewed with updated declarations provided before the renewal date and no quote received for that amended policy post renewal of the policy. Our renewal date was 17 January 2015 and our declaration was supplied to the brokers on 9 January 2015 for which no quote was received prior to renewal of the policy. We have now on 26 February 2015 (by email hard copy received 2 March 2015) received a request for an additional premium and fee - are we by law obliged to pay this please as it is post renewal date and we were not advised of any amendment to the cost previously advised.
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Alex Watts :

Hello my name is ***** ***** I will help you with this.

Alex Watts :

Just to be clear, you had already renewed when the updated quote was given afterwards, is that right?

Alex Watts :

How much extra do they want to charge please?

Customer:

Yes the renewal was in place and the further amount is £561.60

Alex Watts :

Is it just a broker fee or have circumstances of the insured changed?

Customer:

Our circumstances have changed and we informed them of this on 9 Jan 2015 and they renewed our policy on 17 January 2015. We have subsequently received an invoice for an increased premium of £561.60 the brokers have waived their fee.

Customer:

No previous notification was received by us of any increase in the premium.

Alex Watts :

So it was renewed by your brokers failed to declare the change in circumstances, is that fair to say?

Customer:

The policy was renewed after we had submitted updated declaration on 9 Jan 2015 and no further communication was received by us from the broker in respect of any increase there would be to the premium before they renewed the policy on 17 January until we received their email on 26 February 2015 followed by hard copy today 2 March 2015 with attached invoice for the increase in premium of £561.60.

Alex Watts :

It would appear that they forgot to tell the insurers. Technically you should pay because the insurers can withdraw the Policy. However in my view the broker should pay the shortfall, or if you pay it you can claim it back from them.

Alex Watts :

It appears they didnt tell the insurers about the change when they should have. They appear to be in breach of Section 13 of the Sale and Supply of Goods and Services Act 1982 by failing to act with all reasonable skill and care.

Alex Watts :

So either get them to pay it and the matter is concluded. Or pay it (to make sure you keep the insurance) and pursue the brokers.

Alex Watts :

You need to write and set out your losses and request a refund within 14 days or say you will go to Court within 14 days. You should make sure you send this signed delivery and keep a copy.



If they do not refund you then you can issue proceedings in the County Court. You can either do this online at: www.moneyclaim.gov.uk or by completing form N1 http://hmctsformfinder.justice.gov.uk/courtfinder/forms/n001-eng.pdf and take it to your local County Court.



The Court will then issue a claim which a copy will be sent to the Defendant who will have a limited time to defend it, if not you can enter Judgment and enforce.



If the claim is for £10,000 or less it will be a small claim so you will not need legal representation. Over this value you would need representation for trial.



Can I clarify anything for you about this today please?

Customer:

Thank you for this how can I save this information for myself to refer to when in conversation with our broker?

Alex Watts :

Yes, once you rate the answer you can print off our chat

Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience: Solicitor with 5+ years experience
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