Why won't VHI refund my travel policy?

Q&A:Q My VHI renewal date was December 2009. I cancelled as I got a much cheaper quote from Quinn. I took out an annual Multi Trip travel insurance policy with VHI last September.

I am going on holiday and checked with VHI about my travel policy to be told that I no longer have travel insurance as I have cancelled my health insurance. I asked for a refund for the remainder of the year, for which I paid €69, but they said no. If they won’t honour my travel policy, should they not give me a nine-month refund?

– Ms A N, DUBLIN

A

It sounds logical that you would get a refund for the unused portion of your travel policy but it appears in this case that this will not happen. This seems to be a classic case of your failing to read the small print. The first hint comes in the promotional blurb for VHI’s Multi Trip insurance which states that it is exclusive to VHI healthcare members.

I have checked the policy rules in force in September last when you took out your policy and, on page 2 of the terms and conditions booklet, it lists a number of “frequently asked questions”. The first of these asks whether someone has to have a current VHI Healthcare Hospital Plan to avail of Multi Trip cover. The answer is very clear: if you discontinue your VHI Healthcare Hospital Plan, your Multi Trip policy is automatically cancelled. It also states that there are no refunds of premiums paid on the travel policy. I think you will have to consign the €69 to experience.

CAN I FORCE AIB TO APPLY A LOWER INTEREST RATE?

Q

I have received an offer of a mortgage from AIB. Although I applied for the loan over six weeks ago, they’ve now put me on the recently increased rate of 3.65 per cent for a three-year fixed. This is not acceptable to me considering I was told many times that there was only an issue with my application because of people within AIB not sending it to the right part of their company. This was an internal AIB matter. Surely I shouldn’t suffer the consequences of paying more per month because of this delay in processing. I was speaking to a guy in AIB that told me all this! Do I have any rights in this regard at all?

– Mr M D, E-MAIL

A

The fact you have managed to get the mortgage at all will encourage some people. Frustrating as it is, I do not think you will be able to force AIB to apply the lower rate available when you first applied for your loan. The relevant rate is only determined at the point of loan sanction. This is a double-edged sword. If your application was being processed at a time of falling rates, you would benefit from any drop in rates.

In relation to the delay in processing, as I understand it you have nothing on paper, simply a conversation with an AIB staff member. In today’s climate, with banks adopting much tighter oversight of loans, it’s quite possible that it could take six weeks from an initial application to get loan approval, especially if further information or medicals were required. It is always open to you not to accept the offer but remember mortgages are hard to come by in the current climate and there is no guarantee of a better rate elsewhere.

Please send your queries to Dominic Coyle, Q&A, The Irish Times, 24-28 Tara Street, Dublin 2. E-mail: dcoyle@ irishtimes.com

This column is a reader service and is not intended to replace professional advice. No personal correspondence will be entered into.