Mid Term cancellation policy

daithicarr

I am just wondering on what grounds are health insurance companies allowed to charge you most of the remainder of a annual policy when you aren't getting any service for the money your paying .

My partner cancelled her aviva policy with 6 months left because we could no longer afford it. The amount of money they want us to pay back is about 2/3 rds of the remaining 6 months.

How are they allowed and why are they charging this, as we arent getting any service for those 6 months.

GerardKeating

daithicarr wrote: »

I am just wondering on what grounds are health insurance companies allowed to charge you most of the remainder of a annual policy when you aren't getting any service for the money your paying .

My partner cancelled her aviva policy with 6 months left because we could no longer afford it. The amount of money they want us to pay back is about 2/3 rds of the remaining 6 months.

How are they allowed and why are they charging this, as we arent getting any service for those 6 months.

Many health insurance polices have an annual fee, and when you pay monthly, they "lend" you the amount of the policy, and then you repay the loan in instalments. You might have this kind of policy.

daithicarr

surely then you should still be entitled to cover for a portion of the remaining time as your paying for it .

if your paying 2/3rds the remaining cost, you should be entitled to 2/3rds of the remaining period of the policy ?

homer911

you will need to read the fine print on the contract

daithicarr

oh im sure its in the contract, im just wondering how its justifiable or allowed.

if the contract had in the small print that if I were to cancel they could take my house and every penny in my account i doubt it would be accepted.

I dont see how they can justify charging you for a service your not receiving

oldyouth

When health insurers started offering special deals on a regular basis, policyholders were switching a few times during the year. This is an admin nightmare for any business, so they have inserted these clauses to restrict lapses to the renewal date

coylemj

oldyouth wrote: »

When health insurers started offering special deals on a regular basis, policyholders were switching a few times during the year. This is an admin nightmare for any business, so they have inserted these clauses to restrict lapses to the renewal date

+1 Motor insurance companies do the same, the refund if you opt out early is less than what you'd get if it was paid pro rata so there is an incentive to stay with them for the remainder of the year, otherwise people would be chopping and changing all the time which would cost them dearly in extra administration.

blindside88

There is a government levy on health insurance (was €285 per adult per annum, now €350), the health insurer pays this to the government once you have served out your cooling off period and needs to recoup this from you, there may also be an admin cost on top of that