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JGM, Solicitor
Category: Scots Law
Satisfied Customers: 13186
Experience:  30 years as a practising solicitor.
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I purchased instant temp car insurance online. I have had

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I purchased instant temp car insurance online. I have had several successful short term policies. The latest one however my card payment was initially refused by my bank and then authorised. When I checked whether tbe policy was active it was not. However the insurance company still have authority to take my money for this policy and have not released the funds back to me. Does the fact that they have not released my funds back to me constitute a contract?

I am a solicitor in Scotland. If the insurance company has taken a premium then that is indicative that they have sold you the insurance policy unless there is another issue as to why the policy has not been placed on risk. Have you asked them why the insurance is not in place?

Customer: replied 9 months ago.
They say they have not taken payment. The bank have authorised the transaction and sent the money to them. They have neither acknowledged or declined the transfer. Meanwhile my money continues to be reserved by them and cannot be used by me to purchase alternative insurance. I have asked them repeatedly to acknowledgd the transaction but they claim they cannot.
Customer: replied 8 months ago.
The bank have forwarded me the 2 authorisation codes they sent to Cuvva authorising payment for a pokicy starting 13.4.18. Cuvva cancelled these but took a payment from me 1 week later for 5 days of cover starting 18.4.18. In my view I paid for cover from 13.4.2018 and they must honour the transaction.
Customer: replied 8 months ago.
They held my money for 5 days without activating the policy. I had no access to funds to purchase alternative insurance as they had authority to take those funds. Indeed if I am alresdy covered it is illegal to insure my car twice anyway.

Have they refunded anyth8ng to you?

Customer: replied 8 months ago.
They have refunded both payments by rejecting them even thougj they were authorised. Were told they were authorised. And they are in the business of providing instant insurance upon payment after I accepted their quote.

My own view is that I agree with you. If they accepted the payments then they accepted the risk. In practical does it matter now?

Customer: replied 8 months ago.
The reason this is important is that while I was driving assuming I was insured I was hit by another driver and he wants to make a claim. I wad insured before the accident snd after the accident but on the day of the accident this admin hiccup appears to have invalidated my insurance. I pay for my insurance on demand. I don't expect the company to tie up my funds and not honour their commitment.

Yes I agree. They have accepted the premium so they are due to accept the risk.

Customer: replied 8 months ago.
If they had instantly released the funds I could have reapplied. But they took 5 days to release the funds before I would be able to reapply.
Customer: replied 8 months ago.
They are likely to argue that they had not accepted the funds but I had sent the funds in good faith expecting them to honour their quote.

In practical terms for that sort of insurance that doesn’t work. I see you are going to have to complain to the ombudsman here.

Customer: replied 8 months ago.
Ok thanks.

You’re welcome. Don’t forget to leave a positive rating on the system so that JustAnswer credits me for my time.

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