Club Caravan Insurance

Pretty sure that they are still just a broker even if now first contact

I have never claimed, however I thought you dealt with them about a claim, rather than the insurance company, before this change. 

I certainly took their statement to mean they were covering it. If that is not the case, I would say their advertising is somewhat misleading.

The club is not an authorised insurer and cannot insure you other than as an intermediary for which it is authorised. This would not prevent it having been given the power to deal with claims by the insurer although I do not know if it is.

Where an introducer has a large volume of business, it is fairly common for insurers to give them claims handling power within specified limits.

Interesting information WW. I was happy with the cover in any event. However, I don't feel they should be using phrases like you're protected directly by the Club, if they are only handling the claim.

It is misleading and might be better written.

Thanks for the comments – it’s good to hear people’s experiences of claiming have been positive. 

Below is some information on how the Club operates the caravan cover, which hopefully removes some of the understandable confusion that has arisen. 

The Club used to provide caravan insurance. This was sold and serviced by the Club but was underwritten (in other words the risk carried by) an insurer. The claims were handled on behalf of the insurer by Devitt.   

Last year a change was made and the caravan cover was brought completely in-house – from 1 March this year, all our members with caravan cover will have been moved onto the cover provided by the Club. The key point here is that claims made under the caravan cover are being paid by the Club out of the contributions paid by members for the cover. 

As some have correctly highlighted, the Club is not an insurer. To set up as an insurer would be hugely costly and not financially viable. However, as a membership organisation we were able to set up what is called a Discretionary Mutual. These are not unusual but not as common as insurers; other discretionary mutual organisations include for example: The Military Mutual, Benenden, and the Fire and Rescue Indemnity Company. 

Part of the benefit of the discretionary mutual model is that the cover provided does not equate to an insurance contract and as a result isn’t subject to the same level of regulation as insurance. This is because one of the facets of a discretionary mutual is that claims are paid at the discretion of the organisation.  That means that the payment of claims is not contractually guaranteed, but as you’d expect with mutual organisations owned by the members, claimants can expect a fair and reasonable response to claims made. 

To reassure our members, the Club has taken out a group insurance policy, which is referenced in the cover wording. This protects you should we not have sufficient funds to pay claims. 

As regards claim handling, this is provided on our behalf by Devitt. Using outsourced claims handlers is not unusual in financial services although often the fact that this is happening won’t be visible. The Club remains responsible for the Caravan Cover claims and we have ongoing review and monitoring processes to make sure Devitt service our members as we’d expect, and Devitt refer to us for a decision on whether to pay or decline claims when necessary. 

The Club itself remains authorised and regulated by the FCA given we continue to provide other regulated insurance products. 

I hope this has explained the situation a bit more clearly. 

Jacci

So where were the security guards when the van was having the locks cut of with a grinder as they are not quiet machines.

Part of the benefit of the discretionary mutual model is that the cover provided does not equate to an insurance contract and as a result isn’t subject to the same level of regulation as insurance. This is because one of the facets of a discretionary mutual is that claims are paid at the discretion of the organisation.  That means that the payment of claims is not contractually guaranteed, but as you’d expect with mutual organisations owned by the members, claimants can expect a fair and reasonable response to claims made.

And this benefits the insured how?? Not sure that I want an 'insurance' that is not subject to the same level of regulation as insurance and where the payment of claims is not contractually guaranteed.

Maybe look elsewhere at renewal !!

Think I’ll belooking elsewhere for my new for old policy come renewal time.

Can somebody please report my post and ask for an explanation of how the new , less regulated, discretionary payout 'insurance' benefits members ..... if at all.

'And this benefits the insured how?? Not sure that I want an 'insurance' that is not subject to the same level of regulation as insurance and where the payment of claims is not contractually guaranteed.

Maybe look elsewhere at renewal !!'