17th May 2022

How not to do TCF

A lot is made of TCF in the regulatory world but what does it look like in reality?

I thought sharing some very recent experiences might give some major brands food for thought. In this case I am very specifically referring to a major motor insurer. But in so many ways this is symbolic of everything that consumers see as wrong with financial services industry that spends millions each year in advertising and marketing to attract new customers and then throws all the glossy, oh so friendly brand customer service images down the toilet when that customer dares to make a claim.

On Good Friday at 03.10 precisely, my much-treasured Mercedes, all bought and paid for, was seen for the last time on my Ring camera, disappearing from my driveway. At the time of writing, never to be seen again. 

This was a very professional job, I still have the keys, our electric gate opening arm device had four bolts removed to allow the gate to be manually opened and very politely closed as the three who stole it left.

Anyone who has been the victim of burglary or theft will have an underlying sense of violation. The idea that anybody can enter your property, in this case in the early hours, to take something you have worked to pay for over many years, is simply an awful experience. 

Just when you think it would not get any worse, a call to the insurance company to report the theft reinforces everything that the public finds wrong within the world of TCF.

I had decided much earlier to report online as I knew a lot of information would no doubt be required. Interestingly enough, they ask at that online stage for my driving licence details and a DVLA verification code to check I have a valid licence. That check may show I have failed to declare any penalties that might impact upon the validity of the policy issuance and the claim I was about to make.

I actually got to speak with someone after 8.00 as the office did not open to report any theft details until then. 

When answered, the usual ID protocols that ensued were immediately followed by a warning that any claim would affect future premiums even though I had a protected bonus, and I would not qualify for that either should I have another claim within 3 years. Nice! 

No mention of sorry to hear about the theft, it must have been a shock, was everyone safe? This premium alert was followed by the question “have the police been notified, do you have a crime reference” and further followed by “there are a lot of questions that we need to ask before we can consider the claim”. 

Over my lifetime I have suffered some two burglaries and now one car theft. These claims, without exception, resulted in the insurance ‘interrogation’ that makes you feel that insurer does not believe you.

This was my first car theft.

After completing the online claim, I was now entering a phase that I will call ‘ve hav ways of making you talk’? 

“When did you last use the car, did it have a tracker, where did you last go, what was the purpose of the journey, how far was that, what time did you return, what was the mileage on the car, who was driving, did you lock the car, where were the keys, is there any finance of the car, when did you pay for it, does the car have a current MOT”. 

Although I am sure that questions need to be asked, this is a crime, and I am a victim of it. My wife and I have found the invasion of our privacy and theft of a pretty expensive vehicle quite traumatic and that was not recognised at all.

I asked about the personal effects I had in the car, a large number of smaller personal items were in it like sunglasses, spare glasses, iPod, hats, a car blanket my wife had kept from her childhood after her father died and was immediately told that the maximum amount I could claim, if the claim was accepted, was £150. Fabulous! 

After concluding this initial phase I was told to expect a further call after the Easter holiday weekend.

Now I do live in hope, albeit a bit unlikely, that this 6-year-old car may be found, if not, I know that as the car was irreplaceable in terms of specification the sheer cost to do so will be quite a bit on top of any claim pay out to replace something that was bought and paid for a while ago.

As promised, the call back came. In that call I was asked to send some more documentation, the police report, the keys, the V5 and a copy of the ‘Ring’ footage. 

And then the questioning resumed - on repeat. “When did you last use the car, did it have a tracker, where did you last go, what was the purpose of the journey, how far was that, what time did you return, what was the mileage on the car, who was driving, did you lock the car, where were the keys, is there any finance of the car, when did you pay for it, does the car have a current MOT.  Oh, and can I have a screenshot of the tracker app screens”.

 Do these questions need to be asked again and again? They tape everything.  

My instinct is it is to catch you out, any error or contradiction is keenly hoped for. This time in addition to the repeat of the questions I was asked if I had made any claims in the last 3 years. They will check the insurer database- CUE.  This means for the uninitiated ANY claim. In other words, if you have and did not tell us, we may refuse the payout for non disclosure.

So that is it, all questions answered.

But no, more questions by e mail. They want bank account details from some four years ago confirming the deposit paid, the contract of purchase, a statement from MBFS showing monthly payments made, a letter confirming that the loan was paid off, a bank statement showing how the loan was paid off.

As a parting question on my part, I asked about a loan car. The response was that as the car has been stolen, we do not provide such a thing, they would if it was an accident but not a theft. 

I have sent the keys and V5 back, yet I live in hope that the car may be found before any claim is paid.

I have now been without the car for some 4 weeks; the claims settlement process is almost complete and a call yesterday came through to discuss and agree the value as there is no sign of the car materialising. 

Surprisingly, the claim value exceeded my somewhat jaundiced expectation but the checks continue.

I am asked for my bank details to settle the claim, I am then asked to prove the validity of that account. Arrrggggghh, they have this information already by way of proof of car deposit payment, insurance premium payments, payments to settle the finance, why ask again. “Money Laundering” they say. They will also do a credit check.

And as for the money, in an age of electronic, same day payments I should expect to see it in my account within 5-7 working days.

So, insurers of cars in particular, can I suggest that before you insure a car why not underwrite it and the driver/s.

Ask for all the information you would for a claim upfront, as above. But that would mean delays, yes. It would mean cash flow reduction for the insurer, yes. But it would make the back end of why people have to legally take out insurance work much better for the consumer.

Insurance is a wonderful thing, but why the claim process leaves you with an underlying sense that they just might not believe you at a time of substantial, demonstrable loss and personal trauma is beyond me. TCF in the world of life, pension and investment seems to be much more weighted in favour of the customer. 

Let’s hope it continues!

Panacea Comment