Author: Consumer Council
Are you paying unnecessary IPT?
Insurance Premium Tax (IPT) is a UK tax applied to general insurance premiums. There are two rates. Standard at 9.5% and a higher rate of 20% for travel insurance, mechanical / electrical appliances insurance and some vehicle insurance.
Premiums for risks located outside the UK are usually exempt. Therefore if you are taking out an insurance policy with a UK supplier, ask about exempting IPT before you enter into the contract or renewal. Some suppliers may ask you to fill out an IPT exemption declaration form confirming your residential status as being permanently outside of the UK for the period of insurance. It is likely that you will have to return this before the supplier deducts the IPT. Ask what the arrangements are before you sign up or renew. In most cases they will not refund retrospective overpayments.
3 Recent Case Studies Mick and Pam have private medical insurance. They are automatically charge IPT even though the supplier knows they are non-UK residents. In the past, they used to send Mick an IPT exemption form to fill out with their annual renewal. When it was returned they would send out a revised renewal with the IPT removed. They have stopped this practice and it is now down to Mick to request and send in this form on renewal and he will not receive a reminder. Remembering to follow these steps on renewal has reduced their premiums by £60 per month, although the provider will not entertain a retrospective refund for the couple of years Mick did not realise he was being charged IPT.
Vicky and her friends required travel insurance for a European holiday. As they booked through one particular operator, they opted for their travel insurance which was available online (through a third party provider). After obtaining a quotation, Vicky resisted the temptation to pay there and then. Instead, she called the provider giving her quotation reference and asked for the IPT to be deducted. After a little convincing and reference to their own website to prove the policy extends to Jersey, the provider was happy to take payment over the phone for the insurance cover less the IPT and the insurance policy was then emailed to Vicky.
Finally, Rob had experienced a few problems with hire cars. On one occasion he refuelled his hire car with the wrong type of fuel which turned out to be a costly mistake! He was also concerned that he would have a high insurance excess but felt the additional insurance available on the hire car desk seemed to him to be excessive (often referred to as Excess Waiver Insurance, Super CDW). As he was likely to hire other vehicles in the coming year he decided to look into an annual car hire excess insurance policy. He found one online that included £6,000 towards the hire car excess, £1000 towards misfuelling and other key benefits. Whilst ‘checking out’ he couldn’t see how IPT could be deducted. He sent the provider an email enquiry and they came back to him advising that if he took out the policy and sent them the policy number and the last 4 digits of the payment card used to pay for the policy, they would be happy to refund the IPT within 5 working days. Rob is now driving his hire car safe in the knowledge that he has comprehensive annual European car hire excess cover but also paid a reasonable price less the IPT!
Check out your insurance policies and let us know if you are paying unnecessary UK IPT. How much can you save?
Travelling away in the next few weeks …
we suggest you take a closer look at the bar codes on your boarding passes. Do you know what type of information is embedded in therein?
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Special Offers; BOGOF’S, two for the price of three and so on…We all love a bargain and being able to buy our groceries to include deals and offers. We are inviting islanders to send in receipts and examples of till naughties to us
If you had to name the top consumer complaint received by the Channel Island Financial Ombudsman in Q1 2016 what would you say?
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Plus Community Savings BIG Extras Savings Challenge.
Registering For a Manufacturer’s Free Warranty or Guarantee
You are in a rush to get your new gadget or kitchen appliance out of the packaging. You may have seen a warranty or guarantee card fall out of the box. What exactly is it for and should you fill it in? Trading Standards has provided answers to these
Holidays and Travelling
Each year thousands of us travel by ferry and aeroplane for summer getaways, weekend breaks, gap year adventures and to visit friends and family.
Although most of us have trouble-free journeys some do experience unexpected disruption to their travel plans and holiday arrangements.
The following articles visit some of the challenges and issues which help us to reduce the likelihood of the unexpected during our journey and to navigate our way should things no go quite to plan …
Our next seminar is going to be rather interesting..do you cohabit? Are you considering cohabiting? Perhaps it is worth knowing how you stand legally and what the rights and wrongs are of cohabiting?
10 Top Tips
GET YOUR PHONE SORTED TO AVOID DATA ROAMING BILL SHOCKS
Check roaming prices and bolt-on solutions
with your mobile network
before you travel
Most operators will offer these, but check when it
it cannot be retrospective
Telco Contracts – when does ‘Fixed Mean Fixed’?
When you sign up for a mobile phone, telephone or broadband contract you know you’re going to be committing to a fixed length contract, usually 12, 18 or 24 months.
You also know that the terms of that contract – including how much you pay for it – should be fixed over that period. The consumer is tied into that contract unless they pay an early termination charge (“ETC”) to leave before the end of the minimum contract period.
Remember that the Telco providers’ terms and conditions usually allow for price increases and variations to your contract during this term.
Thanks to a licensing condition called ‘fixed-means-fixed’ imposed by the regulator in April 2014, if your provider decides to increase prices part way through your fixed term contract, you should be given two calendar months’ written notice before the price rise and an option to end the contract penalty free. For example, if the amount of data included in your contract is reduced, you may end up paying more than originally agreed. As a result of change to licence conditions, you can exit the contract without penalty if the provider increases the cost of their deal.
This right only relates to changes to products within the list of services paid for by the recurring fee / subscription charge. If your deal includes a number of free services, the key point will be whether those were included in the original offer. If they were not, even if they were free originally, the operator is able to introduce a charge for them in future. It also does not apply other ‘out of bundle’ prices such roaming charges.
Please be aware that the protection afforded to you under ‘fixed-means-fixed’ only covers price increases ‘in-bundle’. In other words, your monthly allowances.
‘Out of bundle’ costs, being the amount you pay for exceeding your monthly allowances or new charges introduced for something which was originally free are likely to not be caught by this protection.
Our advice is to make sure you fully understand what is ‘in’ or ‘out of bundle’ when you sign up to a new contract and be aware that prices can change.
Diving into your chocolate egg on Easter Day is a seasonal favourite but, gram for gram, are you paying much more for your egg than an everyday chocolate bar?
TelCoWatch – Creating Greater Transparency in the Island’s Telecoms Market. …our new website.
How much do you know about the role and services of the Channel Island Financial Ombudsman?
Pricewatch ….back by popular demand we sharpened our pencils and went out to check on a few food prices in Jersey… there were potential savings of £1.60 between the stores.
Fancy joining us for one of our #free lunchtime seminars? The next topics include knowing your rights as Cohabitees, Prenuptial Agreements, Long Term Care, Person al Injury Claims, Staying Safe on line and Long Term Care….
Flying off on Holiday
Check out our Plane Facts guide which highlights your rights if things go wrong
It is important to be aware of your rights:
If your flight is delayed or cancelled you are entitled to assistance and in some cases compensation. If you are denied boarding because the airline has overbooked the flight, you are entitled to compensation.
Your rights are protected by European Law (Regulation (EC) 261/2004) and are the same regardless of the airline you are travelling with.
Your rights are protected for any flight from within the European Union (EU) and on flights from a non-EU country into the EU, provided the airline is licensed in the EU.Read More
Going on Holiday? Its easy to forget to arrange the travel insurance in the excitement of planning your break.
Top Tips for Travel Insurance:
- Make sure that the medical cover is adequate – to help pay medical bills £2 million medical cover is advised by Which for just Europe and £5 million for worldwide.
- Cover your gadgets – you may need to extend your home insurance to cover as single items on your travel policy may only be covered for £250.
- Missed flights and missed connections (make sure that this includes the Channel Islands)
- Check the cancellation provisions – how much are you covered for in the event of the holiday being cancelled by unexpected events e.g. illness.
- A good travel insurance policy should provide cover for Illness, injury or death while you are away; Repatriation (getting you back home
- Check that the policy covers