topic Mandatory Insurance or not Mandatory Service? in Discussions & Feedback

Mandatory Insurance or not Mandatory Service?

Anonymous — Fri, 20 Aug 2010 10:40:32 GMT

Just got my upgrade to a Desire.

I had to have the £7.50 insurance but I could cancel by phoning within 14 days.

I cancelled as fast as I could. They still charged me for the first month but after another call my account is being credited with the month and the part of the contract month that I had my iphone as well which I guess makes it a retrospective charge?

So, I will get my money back. The question is why this charge is automatically applied to the new contract with the only out being the customer cancelling within 14 days. This is a new form of inertia selling surely? I go in a shop to buy a phone and I end up with an insurance policy that I don't want, and it is incumbent upon me to actually cancel. If I don't I am into 18 or 24 months times £7.50 which is either £135 or £180. Fairly substantial sums on top of a £40 + £5 a month contract.

My question to the O2 Bottom Line enhancers is: Why can't I opt out at the point of sale? If I am offered extended warranties in Currys or similar I can say no. I recall that some companies are making most of their profits through peddling of unwanted insurance policies. Is this the new way of O2 increasing their ARPU?

I am pretty sure it must be. I am guessing that the only reason they give you 14 days is to stay inside customer protection legislation that is not currently specifically aimed at telcos yet but probably should be.

So, what sort of value is this 'nearly mandatory' insurance?

According to dissatisfied customers out in the web-world it is worthless. For some of those complaining elsewhere who have handed over £15 a month for iphone insurance it is money down the drain.

I know that nobody ever writes into sites to say what a great service they had but I am equally sure that many of those who have a legitimate cause for complaint never write on the web as well. All in all I reckon that there are real grounds for concern about this insurance with many complaints about:
replacements that never turn up,
callers kept waiting for lengthy times and then being dropped,
of escape and evasion clauses in the contract that specifically exclude a claim for a lost phone if it wasn't used by the owner in the last 48 hours,
of people unable to get through for a week and when they do being told that they have not met the 48 hour criteria etc etc.

All of it looks like sharp practice. Is that what O2 are providing? Costly & unrequested service that uses every and all reasons to escape liability.

Top tip O2. If I want insurance I will buy my own insurance which meets my needs and not the single choice of one that is provided by companies that are more mindful of their own revenue returns than the needs of consumers.

Mandatory Insurance or not Mandatory Service?

Anonymous — Fri, 20 Aug 2010 12:00:21 GMT

just out of curiousity, where did you get your phone from? As far as i know being told you had to take insurance is total nonsense.

Mandatory Insurance or not Mandatory Service?

Anonymous — Fri, 20 Aug 2010 12:23:06 GMT

just out of curiousity, where did you get your phone from? As far as i know being told you had to take insurance is total nonsense.

O2 in Plymouth when I was there on holiday. I have spoken to O2 three times since and they have never contradicted the 'compulsory with a 14 day cancellation period insurance' story so I am guessing it is policy. This is my 4th O2 phone in a row and I have never had it thrust in my contract before so they have changed the rules. My guess is that is more likely to be for their advantage than mine. Perhaps I am getting cynical.

I was talking to Ally in chat and she says it has always been that way. That may be what it says on her script but it is not the case.

Mandatory Insurance or not Mandatory Service?

Anonymous — Fri, 20 Aug 2010 17:07:18 GMT

I've never heard of insurance being compulsory when buying from O2. I know that some places like phones4u will tell you its compulsory.
If O2 have started doing this, its a very poor show.

Mandatory Insurance or not Mandatory Service?

Anonymous — Fri, 20 Aug 2010 17:59:18 GMT

No insurance is not compulsory.

Mandatory Insurance or not Mandatory Service?

Anonymous — Fri, 20 Aug 2010 19:05:18 GMT

No insurance is not compulsory.

It is in Plymouth Wanty

Mandatory Insurance or not Mandatory Service?

Anonymous — Fri, 20 Aug 2010 19:09:46 GMT

My view is that the sales persons get commission on:
1. Phone model - Desire is pushed, IPhone isn't (the funding comes from the phone provider)
2. Insurance - standard throughout the insurance/assurance business - it is commision that removes value from the investor and returns it to the sales company and staff
3. Accessories - real (unsuccessful) push on those from my salesman

Perhaps O2 have a view on this?

Mandatory Insurance or not Mandatory Service?

jonsie — Fri, 20 Aug 2010 19:16:35 GMT

They must lose their phones more in Plymouth

Seriously, I have bought 2 phones at the O2 store in Bolton within the last 3 months, and whilst insurance was offered, I declined and there was no issue with that. Surely Plymouth should not be deviating from company policy unless retailers have been asked to push insurance.

In this modern era of targets, profit margins and bonuses, it would be no surprise but I would be dreadfully disappointed in O2 if this is the case.

Surely not?

Mandatory Insurance or not Mandatory Service?

Anonymous — Fri, 20 Aug 2010 19:36:27 GMT

Understood stevyjones but I can't understand why they have never contradicted me when I spoke to them about it subsequently. I can see their logic - a fair proportion would not cancel so they are in profit.

I just knew that even though I cancelled the day I got back from holiday I was going to find it on my next bill though. :robotmad:

As to policy - I am sure that O2 can respond if they want to. I can give them date/time and contract number and salesperson if they need it.

Mandatory Insurance or not Mandatory Service?

Anonymous — Fri, 20 Aug 2010 22:34:53 GMT

You'll have to contact O2 direct, we are all customers here.
I have to say I'm very sceptical that this is O2 policy. When other retailers were caught doing this, they were fined.
Perhaps the store you went to is franchised and has instigated this policy?

Mandatory Insurance or not Mandatory Service?

Anonymous — Fri, 20 Aug 2010 23:10:43 GMT

You'll have to contact O2 direct, we are all customers here.
I have to say I'm very sceptical that this is O2 policy. When other retailers were caught doing this, they were fined.
Perhaps the store you went to is franchised and has instigated this policy?

This forum is hosted by O2 though isn't it prking?

I was in the process of writing to them on their contact web form when the chat box popped up - they obviously monitor the email function. I never got round to sending my email as the kids came round. But I will go back and ask them as you suggest.

Mandatory Insurance or not Mandatory Service?

Anonymous — Sat, 21 Aug 2010 00:28:19 GMT

No insurance is not compulsory.

It is in Plymouth Wanty

Which store? Drake Circus or New George st? Mind, neither are franchise stores so would have no reason to push insurance. I have heard of retailers advising customers to take the cover as a gap insurance while swapping IMEI's with their existing policy and cancel within the 14 days. This is only their recommendation though.

O2 stores advisors do not work on commission, this is to prevent pushy sales people.

Mandatory Insurance or not Mandatory Service?

Anonymous — Sat, 21 Aug 2010 10:21:55 GMT

You'll have to contact O2 direct, we are all customers here.
I have to say I'm very sceptical that this is O2 policy. When other retailers were caught doing this, they were fined.
Perhaps the store you went to is franchised and has instigated this policy?

This forum is hosted by O2 though isn't it prking?
I was in the process of writing to them on their contact web form when the chat box popped up - they obviously monitor the email function. I never got round to sending my email as the kids came round. But I will go back and ask them as you suggest.

The forums are run by a third party for O2 Customer's to discuss things. There is very limited input from O2, in the broadband forum. Some members of O2 staff try to help out in their spare time but don't identify themselves as they aren't acting in an official capacity.

You definitely need to complain to O2. Insurance mis-selling is treated very seriously in the mobile industry, and the regulator has previously fined and censured some non-network retailers.
In light of the above, I just can't see this being official O2 policy.

Mandatory Insurance or not Mandatory Service?

Abs — Fri, 27 Aug 2010 07:22:13 GMT

Hi oggbad,

I'm sorry to learn that you’ve been given incorrect information about insurance being mandatory. At O2, insurance is completely optional for customers and can be added within first 14 days if not requested at POS, similarly you have the right to cancel the insurance policy at any given point. For more details around insurances, you can have a look here - http://www.o2.co.uk/termsandconditions/insurance.

Could you please PM me the details you have so we can investigate with the particular store/ sales person and will forward the relevant feedback accordingly.

Thanks

Abs