mikdys

Details from a letter that I sent to this broker today (I will also post up details of their reply - assuming I receive one):

"I am writing further to the above renewal and a letter that I received from you dated 09/07/2010. I am not happy with a number of matters, detailed as below, and I would be grateful to receive your written response to these.

1. I was not aware, until receiving your letter, that I am now insured by Trinity Lane Insurance. From what I can make out this appears to be a company domiciled in Malta, and I suspect may in fact be your own Captive Insurer and from whose profits you may directly benefit. Please can you confirm that this company subscribes to the UK FSCS and FOS schemes? If not, what other protection do I have if they/you should completely cease trading/refuse to honour a claim?

2. I paid you £407.20 to renew cover. Your letter of 09/07/2010 enclosed a Schedule detailing a net premium of £294.76, IPT of £18.20 and a total amount of £312.96. I queried the difference in price in a phone call to your office today and, after having to “interrogate” your member of staff (I had thought under current regulation that brokers were supposed to be open about these matters), I discovered that I have paid: £294.76 insurance premium to the underwriter, £18.20 tax to HMRC, £69.24 “policy issue fee/commission” to Adrian Flux, and a further £25 “arrangement fee” to Adrian Flux. I am not happy that over 23% of my payment has been to Adrian Flux, that this was not made clear to me at the outset, and that this has all helped to increase my insurance cost this year by some £27 and despite not having made a claim during the many years I have insured through you. I would be interested in your comments regarding these costs (for me to consider prior to next year’s renewal and to make comparisons with the overall insurance market -
I regret not having done so this time around).

3. I have not received any policy document detailing the benefits and full terms and conditions of Trinity Lane’s insurance cover. Please can you forward such at your earliest convenience?

I will look forward to your reply and thank you for your attention to this matter.

Yours faithfully,


PS I have enclosed completed copies of the various forms that you asked to be filled in and returned, and I have also copied this letter to the S2000 Owner’s Club for fellow club member’s information (and I will be pleased to advise of your reply also).

lovegroova

I've investigated Trinity Lane, and they are legitimate. It's been quite common practice to redomicile UK insurers to Gibraltar or Malta.

They are regulated by the FSA as can be seen here http://www.trinitylane.co.uk/about.php as well as the ABI and FOS.

Some policy details here http://www.trinitylane.co.uk/about.php and the policy wording http://www.trinitylane.co.uk/pdfs/po...privatecar.pdf

They are owned by Hadleigh holdings, whose owners seem to be the flux family.

This is also quite common practice in the insurance industry - Equity Red Star has been doing this for years, and Admiral owns the brokers Confused.com, as well as Diamond, Shelia's wheels, Elephant and Bell Direct.

Flux sent all the policy details through to me by email very efficiently, and beat their renewal quote by 10% so I can't complain.

keith2.2

I've never had an issue with Adrian Flux, particularly on more difficult to insure vehicles.

I always find their call centre staff friendly and helpful, also.

As regards paying a fee to them - they're a broker, it's kind of how it works..

How did their £400 quote compare to others?

mikdys

Thanks for the reply but I'm still peeved to have been charged nearly £100 commission etc (if they don't offer me some money back I shall definitely walk next year - I would have done so this year but they wanted to keep £60 odd if I cancelled - so much for a "cooling off period").

I have an old fashioned maxim if it smells like **** it usually is ****.

I feel like a real mug for having renewed without question - it won't happen again.

lovegroova

That's the key, the first thing I do is to seek alternative quotes and then ask for a reduction, which is usually given - this comes out of the broker's commissions usually.

Look on the bright side, £400 is pretty cheap for an S2000, this thread'll cheer you up https://www.s2ki.com/forums/index.php?showtopic=794707

mikdys

I've no idea how it compared - I should have shopped around - I will definitely do so next year.

I wouldn't mind so much if they were up front about it - EG "we can insure your car for £300 and we'll charge you £100 for arranging it."

Also, I would have liked to have known my premiums were going offshore for what can only be for financial benefit of the broker.

Given the choice would you feel happier being insured with Hiscox (say) or Joe Malta Insurance? Levi jeans or Tesco jeans still at the full Levi price? How about thinking you have bought Levi jeans, paying a high price, and then discovering they are Tesco after all and there is no refund (without a hefty cancellation fee)?

lovegroova

Well, one has to take into account the relative cost. Hiscox will (most likely) charge you far more for your insurance. i.e you pays your money.

I do understand your concern - I saw the policy documentation, which they emailed to me very promptly, and made my investigations which gave me sufficient satisfaction.

A bit of digging into various insurers will often reveal offshore ownership.

Direct Line is owned by RBS, who are hardly a paragon of financial stabilty...

s2000 gib

I realise you can't turn the clock back but the basic principle behind these companies redomiciliation is 'tax evasion'. It's not that they're evading tax but put simply they move offshore to pay less tax and have higher profit margins and dividend payouts.

It doesn't mean the product is any different to the customer, just the 'back office' is. The product remains the same as the law in say Gibraltar and I'm sure Malta is brought in line with UK law so all the bits and bobs are still there.

Here's a quick read:

Gibraltar - redomiciliation law

HTH

integra_man

Pay peanuts get monkeys...

The Loon

I'm paying more twice the amount of your renewal premium !