Caravan Club Non Insurance Policy

Posted on 03/11/2019 11:41 by Surfer

Before the 12% insurance premium tax the quote by Towergate was actually lower than the CMC plus the excess with Towergate was £125 less. We are happy to pay the 12% tax for proper insurance.

BTW in most HP agreements one of the clauses will state that as a condition of the loan the caravan must be insured.  Plus of course many storage locations also insist that the caravan must be insured.

If the CMC caravan were in a storage location and it caught fire causing damage to other caravans where would that leave you if the the committee rules against you?

Posted on 02/11/2019 10:10 by

They will be regulated by the FCA however as I see it the FCA are there to regulate conduct based on the contract with a company and I would not have as great a confidence if I had entered a contract with an insurance provider who stated that all payment was at their discretion. 

The Insurance Ombudsman would be my port of call for an insurance dispute but with CC 'cover' this will not apply as they are not regulated by that body.

Posted on 03/11/2019 13:36 by obbernockle

You mention "all payment was at their discretion" whereas I think the club has said (something along the lines of) they have discretionary power to decide claims outside the specified terms.

We have the club cover so I will read the precise wording later with considerable interest. I like the previous club insurance as claims made have been dealt with well, however...….

 

Posted on 03/11/2019 14:35 by

All claim settlement amounts are at the discretion of the provider. The difference is with an Insurance provider there is free recourse to adjudication via the ombudsman because it is a regulated product.

CMC is not a regulated policy although the CMC itself is regulated by the FCA as a financial service provider.

The club has not made it clear what the situation is regarding Builders Insurance other than if the club cannot meet claims payments. 

A staff member did say : 

Part of the benefit of the discretionary mutual model is that the cover provided does not equate to an insurance contract and as a result isn’t subject to the same level of regulation as insurance. This is because one of the facets of a discretionary mutual is that claims are paid at the discretion of the organisation.  That means that the payment of claims is not contractually guaranteed, but as you’d expect with mutual organisations owned by the members, claimants can expect a fair and reasonable response to claims made. 

To reassure our members, the Club has taken out a group insurance policy, which is referenced in the cover wording. This protects you should we not have sufficient funds to pay claims.

 

 

Posted on 03/11/2019 14:41 by

Yes, the group insurance policy is the Builders Insurance but it only  protects you should CC Ltd have insufficient funds to pay claims.

Posted on 03/11/2019 15:47 by brue

Details about "discretionary mutuals" >HERE<