I sold my car recently and naturally rang up my insurers, Performance Direct, to request that the insurance cover be ended forthwith. In response they kindly informed me that they were not going to request any further money from me for cancellation. What? I thought, of course you’re not! I’m cancelling the policy and you are required to do nothing further since you are no longer at risk! I don’t expect to make a payment to my local supermarket simply because I decide I no longer wish to buy my fruit and vegetables from them. However, it doesn’t work like that, does it?

No, these days, where stifling bureaucracy and incompetence reign and common sense takes a back seat, it’s not a simple case of putting a line through the policy or noting that it is cancelled. It has to be far more elaborate than that. They told me that there is a standard £50 cancellation fee – just for making a note that cover is no longer required!  Surely just one word written on the policy would do –“Cancelled”!

When they sent me written confirmation they indicated that there was a refund due of £64 but of that, £50 was a cancellation fee and the remaining £14, referred to as “insurance return premium” was retained as “clawback commission”. I could have kicked up a fuss but I have no doubt that the small print covers it perfectly in their favour. Besides, why waste energy banging my head against a brick wall.

I sold my motorbike recently too and the response of the nationally based brokers, Bennetts, was similar. I was made to feel grateful that instead of receiving a refund of £40, or whatever it would be, I should be grateful that I’m not going to be charged – for cancelling my own policy! It really does take the breath away!

Of course, I can understand their reluctance to make refunds, in the same way that I can understand why insurance premiums are on the rise year after year. Honest folk are simply paying the price for the culture of cheating and dishonesty where, each year, hundreds of thousands of policy holders make false or inflated claims against their policies. I understand it but it still leaves a bitter taste in the mouth.