Overview
If you cancel your policy while there is an open claim (or a settled fault claim), you're generally not eligible for a refund of your premium.
From the policy wording: "There will be no refund of premium allowable if there has been a loss or incident likely to give rise to a claim during the current period of insurance."
Refund eligibility when cancelling with a claim
Claim Status | Open Claim Flag | Refund Available? |
Open Fault | On | ❌ No |
Open Non-Fault | On | ❌ No |
Notification Only | Off | ✅ Yes |
Windscreen | Depends | ✅ Usually Yes |
Tip: Notification-only claims must be declared at FNOL to avoid being flagged
Why we charge for open non-fault claims
Non-fault claims can later become fault claims depending on the third party's (TP) response. To manage this risk, we:
Charge the remaining premium when cancelling.
Reassess liability after 6 months from FNOL.
After 6 months:
Third party admits liability: Refund on a pro-rata basis.
Third party denies liability: No refund.
No Third party response: Refund on a pro-rata basis
What about NCD (No Claims Discount)?
We hold off on issuing NCD confirmation for open non-fault claims for 6 months post-FNOL. If liability is accepted or there's no dispute, we can then confirm your NCD.