Unhappy life insurance customer

On behalf of many consumers, I would like to mention that we need to have more rights when it comes to cancellation of insurance policies. I am specifically talking about when the insurance company cancels the policy and NOT when the consumer cancels. Recently I was informed that a specific life policy was being cancelled with no compensation at all. For an older person who now has to find another insurance company with the same amount of cover, it will cost them far more and this has a massive negative effect on their planning for their beneficiaries. Below is a letter that I sent to this company, stating how I felt about the way they had handled the entire business:

Good day (I have removed the name for confidentiality),

Thank you for the email, and yes, I have received a number of sms messages as well as a phone call informing me of the upcoming cancellation of my policy.

I also spoke to one of the consultants at PMD, and the fact that there is no compensation in any way says that, as a consumer, I have no rights. I find this entire 'thing' (for want of a better word) absolutely abhorrent. To top it off, at the end of February, another debit order was deducted - have insurance companies no shame? And yes, it may be a small amount for one person, but when you take the number of people that are covered under this policy - it amounts to millions - of that I am certain.

I mentioned to the lady who called me last week that I will take this further, as it is the principal of the matter. It shows a lack of integrity and I feel that any financial institute that is regulated should not be allowed to do this.

I know that it must have a clause in your terms and conditions stating that customers have no rights in this matter, but we certainly do have a voice!