Acceptable timeframe for refund of health insurance premium?

Dubwat

I'm wondering what people would think is an acceptable timeframe for a refund of my health insurance premium that was taken after I cancelled my contract?

My health insurance contract ran out on 31 Dec 2013. I posted a cancellation letter on 24 Dec 2013, although I accept they may not have been able to process it before the contract was auto-renewed on 1 Jan 2014.

The company took my Jan premium on 02 Jan 2014 and I phoned later that day to cancel over the phone. The staff seemed a bit vague on when I'd get my premium back.

It's now 3 weeks later and I haven't heard anything from them. Nor have I received my premium back.

Should I be worried about the lack of communication or refund? A friend suggested that I'd get the refund at the next billing cycle (i.e., start of Feb). Any thoughts?

ytpe2r5bxkn0c1

Some companies do payment runs at the end of each month.

endofrainbow

probably the February billing cycle.

Dubwat

Thanks.

I know customer service people have very difficult jobs and, before I phone them again, I wanted to get a consensus view on what an acceptable refund period would be. Let's see if they refund me in Feb or charge me again!!

FWIW:
1. They seemed a bit vague when I phoned the first time and transferred me to the sales (retention) team instead of accounts(?)
2. I cancelled a trial software program with an American company in Dec and the money was refunded to me in 2 days. AFAIK, they don't have a physical presence in Ireland...

Wendolene

OP, I was in a very similar situation to yours after I changed health insurance provider 1st October last (fwiw, VHI -> Laya).

I bought my new policy on 30th September, and cancelled my renewal on the same day.

Unfortunately, that was not early enough to prevent VHI charging the direct debit for October, but I got a Refund Statement from them on 8th October with a cheque to pay back the amount charged by DD.

So, all in all, nicely and neatly sorted out in a little over a week for me.

I'd say that the Christmas period will prove to be an additional administrative hurdle for your old provider (and therefore, you). Additionally, they may only process refunds at certain times in the month (say, on the 1st) ... so I wouldn't be worrying too much if this drags on into the first week of February, if you take postal delays into account.

That said, there's nothing like direct communication. Ring them and ask them directly. Don't throw any wobblers, just be direct and succinct in your request to maximise the information you receive in return

AngryLips

Keep in mind that this is the busiest time for issuing payments because it is when everyone on a work health scheme submits their day to day claims as it is when most companies renew

Five Lamps

6 days is hardly enough notice to cancel a contract? Have you checked your T&C's?

You would have got adequate notice if you were coming up for annual renewal.

Dubwat

Five Lamps wrote: »

6 days is hardly enough notice to cancel a contract? Have you checked your T&C's?

You would have got adequate notice if you were coming up for annual renewal.

Strictly speaking (& I'm not a lawyer), you could cancel a contract the minute/second before it is due to renew. But how do you tell the other party?

I believe most companies give 2 weeks (or 10 business days) notice, assuming An Post deliver on time. And I got my 2 weeks notice. So allow 3 or 4 days for research etc and 6 days is probably enough. The Xmas/NY holidays complicate things for sure and I've acknowledged that in my 1st post.

Do you have an opinion on how long a company should take to issue refunds?

D3PO

Five lamps has a fair point. Often the T&C's will say 28 days notice must be provided for cancellation or the likes.

It may well be a case that your health insurance is cancelled but you were libel for Jan's payment due to the notice you provided. Id agree you should check your T&C's its not a case of as you say you can cancel 1 second before its due to renew as you mentioned above.

sandin

insurance has a 14 day cooling off period from the day payment is taken, so the OP could have cancelled anytime up to 14th january and the cancellation would be valid.

As for refund - its not like a trial software where a refund system is probably programmed into the purchase and it all is done automatically. My guess would be to allow up to 28 days.

Picasso19

CBIs consumer protection code requires any regulated entity to refund a premium within 5 days of it becoming due. This would apply to Aviva Laya and Glo.

VHI isn't regulated so I guess they can take however long they like.

As an aside I'm having a few probs with direct debits and company and bank blaming SEPA

Dubwat

Thanks for the info, Picasso. It's good to know there's rules in places for refunds.

If CBI means Central Bank of Ireland, they have a note on the their website saying "With effect from 1 March 2010, the statutory consumer information and education functions transferred to the National Consumer Agency. Please refer to www.nca.ie for information." The NCA might be a good place for me to look for help!

maggymay

I cancelled a VHI policy in November but renewal for 8th Dec was debited from accunt, I contacted VHI and they said 6 weeks for refund to be issued back to my bank it arrived on 26th January. If you contact your bank they can recall direct debit sooner.

Dubwat

Well, I guess I knew it was going to happen - the company took another direct debit payment out of my account today. I phoned and they were very sorry. They acknowledged 'the computer' does say my policy is cancelled. I would get my refund(s) within 3-5 days (as Picasso19 suggested above).

I asked for this in writing and was told they'd email me within a few hours. As it's now gone 6pm, I don't think that's going to happen either...

The company is GloHealth and I found this on their contact us page:

COMPLAINTS
If you are dissatisfied with the service you have received from GloHealth you can call our Customer Service Manager on 1890 744 744 or email us at happytohelp@glohealth.ie and we will do all we can to resolve this for you quickly. If you remain dissatisfied with GloHealth you may refer your complaint or claim appeal to the Financial Services Ombudsman Bureau at the following address: 3rd Floor, Lincoln House, Lincoln Place, Dublin 2. Lo Call: 1890 88 20 90. Fax 01 662008900. Email enquiries@financialombudsman.ie. Website: www.financialombudsman.ie

I guess I'll have to escalate this in a few days.

Dubwat

Just to close this out, I was pleasantly surprised to get my refund today.

So I guess it does take 3-5 days for a refund to happen... once the company decides to do something about it.

Thanks for all the replies!