Insurance Complaint Resolved – A Difficult Chapter Comes to a Close

We’re very pleased to confirm that our long-running complaint against our former insurers and insurance brokers has now been resolved. We proved that there was no non-disclosure and that the cancellation of our policy was incorrect. After months of negotiations, Resolven Miners Welfare has agreed a package of compensation.

Now, for those who want the full story – and in the spirit of the transparency we promised – here’s exactly what happened:-

Where It All Began

Back in 2023, following the closure of Resolven Miners Welfare, we held a community meeting to explain why. One major reason was that our insurance policy had been withdrawn. We were told this was due to “non-disclosure” – something we strongly disputed.

At the time, we committed to being as transparent as we possibly could, though we were limited in what we could say due to an active complaint being investigated. That complaint has now been resolved, and we’re finally able to share the full story.

What Was the Problem?

In August 2023, our insurance broker told us that our policy was being cancelled due to the supposed non-disclosure of a limited company used for trading.

To be clear: Resolven Welfare has always had two entities:

This is a very standard setup for Miners Welfares across Wales.

We were able to prove within an hour of the initial notification that the broker had been told about the limited company, all the way back in 2017 during our due diligence before joining the board. Not only did we tell them, but we also had clear proof that they acknowledged this and included both entities on the insurance documents in following years.

Despite this, they still went ahead and cancelled the policy.

The Impact

Losing the policy created major issues. We couldn’t get alternative cover – the building was already difficult to insure due to it’s condition, and with a “non-disclosure” cancellation on record, it became near-impossible. The cheapest quote we could find was over £12,000 – simply not affordable.

We made an immediate complaint to the broker, who responded by claiming they had no record of being told about the limited company.

We then submitted a subject access request and got a copy of our full file from the brokerage – where the limited company was mentioned over 50 times. Even then, they denied having a record.

The Long Road to Resolution

With nowhere else to turn, we escalated the matter to the Financial Ombudsman Service. This was the start of a long and frustrating journey:

• It took months just to determine whether the broker or the insurer was responsible.

• Once the insurer took responsibility, they initially claimed the cancellation followed their terms (we quickly proved it didn’t).

• More months were spent discussing whether the limited company was even eligible for cover (it was).

• They then offered £750 compensation – which we declined.

• Next, they offered to reinstate the policy, but only if we paid the premiums (over £11,000) – declined again.

• They offered to pay the premiums and give £750 but refused cover beyond March – again, not good enough.

• Eventually, they agreed to:
  • Reinstate the policy from the cancellation date (as if it had never been cancelled) up to and including 31st March 2025. 
  • Cover the premiums
  • Pay a fair amount of compensation
  • Remove the incorrect “non-disclosure” mark on our record

This last point was especially important. We no longer need to declare a cancelled policy – because it was never right in the first place.

Where We Are Now

The process took far longer than any of us could have imagined, but we were determined to see it through properly.

We’re now working with a new insurance broker and have been offered a policy with a much more reasonable premium (Than the £12,000+ quoted previously).

This has been extremely stressful and time consuming for all involved. With this chapter behind us, we now look to the future.

Could you help to shape our future…. Read more here