nigelinspain

Hi,

We have had an insurance policy with a company here in Spain for the last 5 years that we paid bi-annually. Each year the broker has taken the money, never once sending us any details as to how much the new policy will cost, or send us the new policy either.

Due to the downturn in the economy we looked around and found we could get a cheaper policy with a different company.

So we contacted the broker and told them we no longer wanted to continue with their policy. I also informed them that I would stop the direct debit payment.

They have come back to us and told us that the company have tried to take the money from our account and was unable. They have told us that it is law here in Spain that we should have given them 2 months notice in writing to stop the renewal of the policy. I have had insurance before and never come across this before.

They are now claiming that we owe them the six month payment even though we have already paid the new insurance company.

Has anyone ever heard of this law whereby 2 months notice must be given. I certainly haven´t and think they are just trying it on.

Any thoughts?

snikpoh

Yep, unfortunately they are absolutely correct.

However, I seem to recall that there was a proposal to change this law.

It has been discussed on here before so perhaps do a search and check.

dmu

Hi, butting in from the France forum, here you certainly have to give so many months' notice to terminate a contract (depending on what's mentioned in your Contract) and by Registered Letter (otherwise the notice isn't valid). This may sound irrelevant for Spain, but all Southern Europe laws and procedures seem to be similar, if not the same.
I may be proved wrong by a member in Spain, but if you didn't "contact" your broker by Registered Letter, then I suspect you'll have to pay up.
All the best!

Domino

this sounds like the UK trick of rollover renewal
they send you a renewal notice, you start looking around, find someone cheaper and go with them. but unless you actually advise the original company - sometimes up to 3 months before the renewal date they will take their money from yuor account.

I know a couple of people who have been paying 2 insurances for several months without noticing the extra payment.

Fred James

It depends what it says in the policy.

My car insurance with Linea Directa only requires that I give 7 days notice.

My house insurance says 2 months.

avocados

Yes it's the law, but let them sue you. We just cancel payments with the bank when it suits us and have never been sued.

It's also the law that a contract can be cancelled using the same method as it was setup. In other words, if you took out a policy over the internet a simple email is sufficient to cancel. They can't ask for a letter, fax or whatever else.

Countryboy1

Whilst justified in many instances, there does appear to be a general 'fear' or reluctance amongst many expats to challenge unjust , unreasonable Spanish financial and legal procedures and small print conditions.
In the UK, there is of course a much more developed 'challenge authority' mentality which leads many people just to tell companies to 'get lost' and 'sue me'. The fear of adverse publicity often doing the trick.
I wonder how compliant the Spanish are with the rules and regs? Is it just that as expats we are in a foreign country and will do anything rather that rock the boat? We tolerate much we wouldn't back in the UK.
Speaking personally, I tolerate what I consider to be sometimes very poor customer service and quality of goods in many stores and supermarkets here whereas in the UK I'd be 'banging the customer services counter' and asking for the manager.

Lynn R

Actually, this practice of having to give 2 months' notice of cancellation happens with some insurance companies in the UK, too, it's not just a Spanish thing.

I had house insurance through ASDA Financial Services in the UK. I didn't want to cancel it until the sale completion actually took place, in case the sale fell through at the last minute. When I did notify them that I wanted to cancel it, they told me I had to pay a further 2 months' premiums as I hadn't given advance notice. I was annoyed and said you can whistle for it, I am moving to Spain. I had my mail redirected to my elderly father's address for a few months, and threatening letters from debt collection agencies started to be received there! As he found it upsetting, I had to pay up although I wasn't at all happy.

I can't see any justification for these contract clauses as they aren't carrying any risk once the policy has been cancelled.

noelrosie

We had this problem back in May, when we wanted to cancel our household insurance, due for renewal beginning of July. Both the bank who sold it to us, and the insurance company (whom I phoned) insisted on two months notice. As we do not live in our Spanish property, being based in UK, we decided that we didn't need the hassle of any 'embargos' being put on it whilst we weren't there and 'bit the bullet' this time, whilst making a note to inform everyone concerned by registered letter in April 2013 that we would not be renewing.

Mitzyboy

Yes, I had to wait for the renewal date on my car insurance before I could cancel it! I had to be sure to give a good amount of notice so that they were aware it would not be renewed

jonboy

We have separate buildings insurance on our flat and recently reread our service charge agreement and realised that we are paying for buildings insurance within that! I thought it was a little expensive for mopping the floor every couple of days!
Looking up our own policy I note they require 2 months notice of cancellation and guess what? it is for renewal in the next 4 weeks. So it looks like we will have to fork out another 200+euros. I guess ignorance of language is expensive!

Im_and_Er

Just to add to the French position, because insurance companies were indulging in sharp practice by not sending out reminders in time to comply with the cancellation period (quelle surprise !) the law was changed such that now you have 14 days from the date of the postmark on the letter to cancel regardless.

In UK some car insurance companies try it on by hiding an 'auto renew' tick box somewhere and they nearly got me with it when I first moved to France. Fortunately I was able to convince them that I would have never ever chosen that option, partly with the obvious argument that only an imbecile would but also because when I took the policy out had already bought a property in France and was well into in the throes of the move, plus I had sold the car immediately after I had.

Domino

if you think it is hard to escape the clutches of the insurance companies............

you register a new company in the UK and almost immediately get hit with a bill from the Performing Rights Society for playing music in the workplace and for your customers to listen to when "on hold".

9 months after switching off the television and putting it in the back of a lorry and telling TV Licencing you are no longer living in the UK - you still get threatening letters because the DD has been cancelled, and they still havent processed the refund they owe you.

EsuriJohn

We heard about this clause and how it was imposed with draconian efficiency when we were looking around for cheaper house insurance. We were with Segurios and got the best quote from Mapfre so we asked what we shouid do. We were just about 4 weeks from renewal. They gave us this pro-forma letter:-

"De mi Mayor Consideracion,

Me dirijo a ustedes con el objetivo de informale que quiero cancelar de mi seguro del hogar con su compania, comenzando ……, fecha en la que la covertura de esta poliza finaliza.

Estaria agradecido si me podrian enviar confirmacion del recibo de esta notificacion y que las medidas necesarias seran tomadas para la cancellation de esta poliza de seguro.


Atentamente,"

We sent it immediately by fax and followed up with an email and letter to be signed for. We also cancelled our DD at our branch of the bank.

They did try to take the DD but we reclaimed it immediately and have not heard any more in 2 years.

I also think that the law may have changed in this area and the companies may not have the power to enforce it anymore. Perhaps Fred or Mitzy may know more.

nigelinspain

Hi everyone,

Thanks for all the advice. I have a feeling that Groupama, or the broker is going to want to take this further but for the time being I am just going to sit tight and see what transpires.

They do seem as bad as banks these days, they want to be paid a fortune for doing absolutely nothing.

The broker AJB Consultants of Javea have never even bothered to send out a renewal letter in the five years we have used them. Not once did they inform us as to what the cost of the new policy would be. Absolutely useless!

Anyway thanks, I´ll keep you informed of any updates.