Health Insurance Auto Renewal

hearny

Hello All,

My health insurance was due to expire in October, I got a call from Aviva to see if I wanted to renew it, but was busy so asked them to call me back the following day as I had not decided and was busy.

Anyway no call came from them and the renewal date came and went.

They auto renewed it anyway. I didn't plan on renewing it but I dint notice till I checked my account today and realised the direct debits were being taken out.

So I rang to cancel it today and was told they auto renew the contract so it will cost me some 400 to get out of it (thought he was joking at first). Surely I can't be in a 12 month contract by doing nothing, if this is normal practice I would expect phone companies to do the same.

Is this normal or legal, I asked for the terms and conditions to be sent out via email but still waiting for them.

I know people will say its my fault for not cancelling but nothing I can do about that now.

Health Insurance in my experience is an absolute joke, I had huge problems with VHI too refusing to pay out minor surgery.

Anyone else have similar experiences or advice.

cookie1977

Did they not email or send you a letter about the renewal of the policy?

chris85

yes they are auto renewal. This is normal practice. Think of it this way, since you forgot to call them back you could have been left uninsured and what if something happened and you needed to claim (touch wood you never need to) and they told you you werent covered I bet you would not be happy then? For this reason they do it this way. They cant please everyone in this regard but the policy does protect the customers best interest in terms of making sure they are covered.

This is common practice across many different insurance products and provider. I personally think its good practice as I am aware when renewal is and when a renewal notice is coming out to me.

I am sure they sent a letter with the new premium also and asking you to contact them if you didnt want to continue with them.

shortlegs

Hearny,

Just wondering how this worked out for you?

I'm having a similar issue with VHI, where I actively priced around with providers (including VHI), and they automatically renewed the original contract, and are now looking for 700 Euro for me to get out of it.

Yes, they wrote to me Christmas week, but I never actually read the letter, saying, 'oh yes, I'll be talking to those guys in January, anyway'.

Furthermore, when I renewed last year, they offered me an easier way of paying - direct debit over 12 months - but they continued with the direct debit last January and now claim "there is a contract", but I understood this was for 12 months only.

I have sent a letter of complaint to them, but they're not budging.

Would it not be fairer, that in their letter (last December) that there is a section at the bottom which you sign and return - thus taking action to authorize renewal.

Like you Hearny, I did nothing, and am now getting threatening letters.

I really feel that I have been duped here, and would appreciate any advice.

Thanks.

cookie1977

There doesn't appear to be a lot you can do based on what you've said. You've acknowledged receipt of the letter and that you didn't act on it. While you might not see it as fair (and I'd agree with you auto renewal's shouldn't be permitted) there's nothing wrong with it, legally.

chris85

Consider it this way if auto renewal was not in place your decision to not act on the letter would have resulted in your cover stopping at the end of the policy. This could be a serious error for some people who vitally need medical insurance. This is the primary reason why many insurance policies are auto renewal as many people just dont act on letters for renewal.

cookie1977

chris85 wrote: »

Consider it this way if auto renewal was not in place your decision to not act on the letter would have resulted in your cover stopping at the end of the policy. This could be a serious error for some people who vitally need medical insurance. This is the primary reason why many insurance policies are auto renewal as many people just dont act on letters for renewal.

I'd agree with you but lets be honest, for the most part, auto renewals favour the companies rather than the customer. But it does go to show that if you're paying money for something and a bill comes in to do with that then it should be acted upon (either to ensure continued cover or to ensure you get the deal you want even if that's with another provider).