Very relevant for the Insurance Forum, but think that more Phuket property owners would read it if left here. Move if you wish.

My house and contents insurance policy expired at 4pm on the 12th March. As usual, when I got the renewal documents, I checked out some insurers and brokers for new quotes.

One of these was attractive, so I started asking questions to the broker to clarify level of cover etc. As ever, when you start asking questions, you either get no answer at all, or the answer needs yet further clarification. Upshot was that, although I felt the cover was fine, I wasn't prepared to take out the policy until I'd had some things clarified. So, I ended up simply renewing my existing policy.

So, at 11am on 12th (5 hours before the current cover expired), I went to my current broker, paid the annual premium, and walked away with a receipt.

About 3pm, the broker rang my wife and said that they couldn't get through by 'phone to the Insurance Company to renew, and that a fax they sent hadn't been acknowledged. Therefore, cover couldn't be renewed until Monday morning.

Naturally, you can imagine my reaction. The premium had been paid, and policy renewed (in my opinion), and receipt received, but I'd have a gap in cover of about 40 hours.

I can see the 'theory' of how this can happen when a policy expires over a weekend where the broker is open but the company is shut. But I'm startled that there's no mechanism to ensure this doesn't happen.

So, a learning point for all is that when a broker gets your money and you get a receipt, it doesn't mean that the policy is renewed from that point in time.

Sounds odd. I thought normally a cover note would be issued on the spot.

The company can issue a cover note, or the broker if he has been powered by the company to do that.

To the OP: not a smart move to renew 5 hours before expiration. And on a Saturday.

The company can issue a cover note, or the broker if he has been powered by the company to do that.

To the OP: not a smart move to renew 5 hours before expiration. And on a Saturday.

Why? My broker is open for business, so should be able to write that business.

But, that's the point of my post - a 'warning' to others here.

In UK and most other places, you could renew with 1 minute left and everyting would be fine. Here, the learning point is that you need to allow the broker sufficient time to contact the insurer. And until such contact is made, you run the risk of being uninsured even though the broker has your premium payment and issued a receipt to such effect.

Why? My broker is open for business, so should be able to write that business.

But, that's the point of my post - a 'warning' to others here.

In UK and most other places, you could renew with 1 minute left and everyting would be fine. Here, the learning point is that you need to allow the broker sufficient time to contact the insurer. And until such contact is made, you run the risk of being uninsured even though the broker has your premium payment and issued a receipt to such effect.

seconded.

I have several times payed for insurance a week prior to expire, and still discoverd I have not been insured for several days when docs finally arrive. Scary on vehicles

In the uk the system is the same. The company can renew, or the broker can renew if he has been powered by the insurer to do so, sorry, don't know the name for that in english.

In the uk it would even make less sense than here to wait till saturday 11 am to renew a policy expiring 5 hours later.

In the uk the system is the same. The company can renew, or the broker can renew if he has been powered by the insurer to do so, sorry, don't know the name for that in english.

In the uk it would even make less sense than here to wait till saturday 11 am to renew a policy expiring 5 hours later.

Eh???

In the uk the system is the same. The company can renew, or the broker can renew if he has been powered by the insurer to do so, sorry, don't know the name for that in english.

stephenl

The word you're looking for is 'empowered' or even 'authorised' will do

stephenl

The word you're looking for is 'empowered' or even 'authorised' will do

ooops that should spell stevenl

In the uk the system is the same. The company can renew, or the broker can renew if he has been powered by the insurer to do so, sorry, don't know the name for that in english.

stephenl

The word you're looking for is 'empowered' or even 'authorised' will do

Both those words i have used, yes. But there is an official word as well used in insurance. Know both terms in dutch, voorlopige dekkingsbevoegdheis, temporary cover authorisation, and volmacht, authorised to act on behalf of the company.

Lots of weird things about insurance here.

In AUST you can renew your insurance just before it expires and you are given a cover note number,

You just quote the number if you make a claim before you receive the official policy renewal

I expect its the same in most countries.

Lots of weird things about insurance here.

In AUST you can renew your insurance just before it expires and you are given a cover note number,

You just quote the number if you make a claim before you receive the official policy renewal

I expect its the same in most countries.

Same in Thauiland Peter, provided you renew directly with the company, or with a broker who has authorisation to do so.

In the uk the system is the same. The company can renew, or the broker can renew if he has been powered by the insurer to do so, sorry, don't know the name for that in english.

stephenl

The word you're looking for is 'empowered' or even 'authorised' will do

Both those words i have used, yes. But there is an official word as well used in insurance. Know both terms in dutch, voorlopige dekkingsbevoegdheis, temporary cover authorisation, and volmacht, authorised to act on behalf of the company.

You mean a hold covered facility, whereby a broker or junior staff member at the insurance company has the authority to grant cover on a temporary basis, such as over a weekend or overnight, without prior approval of senior underwriters.

A number of policies also contain a grace period, automatically extending coverage at expiry for those people unable to renew on time, but that is not standard and would be hidden in the policy terms and conditions. This may be triggered by a letter/email/fax of intent to renew.

In many countries now most personal lines and motor insurance is done online so this eliminates problems such as this. Asia is well behind in this field, though in Singapore two companies launched within a few days of each other last year. Thailand is not yet ready for online insurance, sadly.

You mean a hold covered facility, whereby a broker or junior staff member at the insurance company has the authority to grant cover on a temporary basis, such as over a weekend or overnight, without prior approval of senior underwriters.

A number of policies also contain a grace period, automatically extending coverage at expiry for those people unable to renew on time, but that is not standard and would be hidden in the policy terms and conditions. This may be triggered by a letter/email/fax of intent to renew.

In many countries now most personal lines and motor insurance is done online so this eliminates problems such as this. Asia is well behind in this field, though in Singapore two companies launched within a few days of each other last year. Thailand is not yet ready for online insurance, sadly.

Thank you, I was hoping you'd help out with this. The cover can even be permanent, but with limitations regarding amount etc.