Caravan Club Non Insurance Policy

The regulator was not toothless when we recently had a claim for tens of thousands. BTW we first approached the club about our issue and the information given to us by the CMC legal department was totally incorrect!

There may be nothing wrong with the cover that the club offers, but once again I stress that they should make it very obvious and clear by a representative of the CMC that you are NOT buying an insurance policy and that the cover you are buying is not regulated as an insurance policy. 

There may be nothing wrong with the cover that the club offers, but once again I stress that they should make it very obvious and clear by a representative of the CMC that you are NOT buying an insurance policy and that the cover you are buying is not regulated as an insurance policy. 

Out of interest, whilst having my second cup of coffee. I clicked the link at the top of the website for insurance. I expected to see a clear statement that the club was not  selling an insurance product and as such was not regulated in its cover. Not evident, Surely in small print at bottom of the page? No.

It does say: 'Caravan Cover is protection for your caravan against theft, loss or damage. You are protected directly by the Club, which means we are responsible for all claims from start to finish.' But it does not explain further.

I thought the info might be clear on the quote page then? Nope.

It seems very strange to me.

Is the general consensus that we would be better off to find a proper regulated insurance company rather than use the club for caravan insurance.

As a further thought, I notice the club provides all sorts of other insurance including motor, home etc, in the case of motor a third party claim could run into millions in say a cause of a multiple on a motorway, where would the club get the money from to cover it?

Mixed really. I am going to another company but I believe that the club cover policy is good. My problem is that in the event of a dispute I cannot look to the Financial Ombudsman to resolve it as FOS does not regulate mutual cover. I could only resolve by legal action. I would not expect a dispute. However when I started legal proceedings as a third party 30+ years ago I didn't expect it then. I also had a minor dispute with an insurance 27 years ago but that was finally resolved amicably.

 

For its other insurances there is proper insurance in place with the club acting as a broker. It is only the Caravan Cover which is a mutual scheme and why only members can purchase. If you look at the top of the page you see that there is caravan cover and insurance on separate tags

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CAMC have taken out a Group Insurance alongside the cover provision.

In statements the club have said four things said that stood out to me.

1. They are not covered my FOS.

2. They are the final arbitrator

3 The Group Insurance is in place in case the club cannot meet its financial commitments. 

4. You might be able use the FOS with regard to the Group Insurance'

But that, as far as I can see is only possible if the club can't financially meet claims as that is when CAMC's group insurance comes into play, and when members may have a third party claim perhaps. I have not read that Group Insurance so who knows?

 

There seem to be a lot of attempts at carefully wording their statements but the above are all from CMC. Does anybody think for one moment that if, in the case of a dispute that there would be any way to use the group policy to seek redress from the FSO that the club would not have made that clear to members?

Phrases such as 'May pay a claim' are ridiculous. What is wrong with saying that the club 'Will pay all valid claims'? All the reassurances in the world would not entice me to reinsure in such a scheme. Their promises are worth as much to me as a car salesman's spoken words. They are there for exactly the same reasons. To sell to their customers.

To me it is a case of smoke and mirrors lest existing some of the cover holders do not renew.