Insurance rip off

[Chook]

Mrs, Chook had been paying an insurance policy on her 76 year old father for the past 5 years, with the insurance co associated with the farmers bank, she missed paying for 2 months & they canceled the policy with out making any contact with her. No letter, No phone call, No TXT,  a lot of nothing, the only way she found out is when she went to pay the arears & the next month. Is this legal? It is totally incomprehensible that they can get away with their actions. If it is legal then the gov. should step in with proper legislation to stop this giant rip off.

[Kwasaki]

I think they are told not to miss payments.

[ColeBOzbourne]

Read the fine print on the terms and conditions of the policy. It's probably right there.

[Moonlover]

If one going to miss paying the premiums on an insurance policy, tell them so and explain why. 

 

I had problems with payments on an endowment earlier this year when I was changing my bank account. There was an issue with the new direct debit form which delayed payments by 3 months. But I kept in contact with the company and cooperated with them until the issue was finally sorted.

 

But if you don't communicate with them, they are probably within their rights to cancel. An insurance policy is a contract and non payment is a breach of that contract.

[internationalism]

contact them and try to renew this policy.

The cheapest is payed for 1 year in advance

[Sheryl]

Moved to the Insurance forum.

 

The policy document will state the provisions as regards missed payments. Often there is a grace period during which, if you make up the payments, the policy will stay valid, but they  need to read the terms & conditions.

 

If the insurance company fails to honor the terms of the policy (for example, if the policy allows a grace period but they refuse to provide it) then they can file a complaint with the OIC online 

https://www.oic.or.th/en/home

 

If not (if policy does nto provide a grace period, or if it is less than the time already passed) then they are out of luck.

 

it is very, very common in Thailand - in fact standard practice - not to give out warnings or cancellation letters for unpaid bills but rather just shut off the service. Happens with electric and telephone bills too.

[Liverpool Lou]

On 10/23/2021 at 11:12 AM, Chook said:

Mrs, Chook had been paying an insurance policy on her 76 year old father for the past 5 years

What sort of policy was it?  Life insurance, savings...?

[Liverpool Lou]

On 10/23/2021 at 11:12 AM, Chook said:

she missed paying for 2 months & they canceled the policy with out making any contact with her. No letter, No phone call, No TXT,  a lot of nothing, the only way she found out is when she went to pay the arears & the next month. Is this legal?

Your wife had a contract with the insurance company, the policy; she pays premiums and, in return, the insurer provides cover.  In the policy conditions there will be a clause that states under what conditions the policy exists or cancels.   If premiums cease, cover ceases also, maybe after a specified period of grace, typically 30 days. 

 

The insurer does not need to write, phone, or text your wife, she had the conditions already.  Of course it is legal, she stopped paying the agreed premiums so the policy lapsed.   

[it is what it is]

 

not sure what the 'rip off' is. the insured didn't pay the premiums so the policy was cancelled, seems fair enough. the worst the insurer could be accused of is lack of customer care