Hi TR Community,
I have been employed by a freight company for a couple of years and recently I changed jobs. They are charging me in excess of $3,000 for "insurance" and stating that it is imposed by the insurance company.
The company pays for my policy that renews 1st of March every year, and I left the company at the end of April, which is two months in. They claim that they have to pay an early termination charge of 50% of the premiums for the remaining ten months in the year. Thus, I am liable for 50% of ten months of premiums which is over $3,000. I am unsure if the premiums are paid annually in advance or on a monthly basis.
I called both the insurance company and they said they don't impose any surrender/early termination charge, but it is the brokers that arrange the fleet agreement with my ex-company. The insurance broker says they have no idea regarding the terms of the and say that they are not aware of any surrender/early termination charges either.
Would my ex-company be able to use my insurance premiums on other employees? If that's the case, should I still be liable for it as there was no loss to my ex-company? Which party (aside from my ex-company) can confirm that indeed the charge collected by the insurance company? What are my options here?
Thanks in advance.
Insurance charges for resignation (Canada)
Discussion in 'Canadian Truckers Forum' started by EarlyTerminationCharges, Aug 26, 2019.
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At my company, insurance premiums are deducted from weekly settlements. When i left, the gal in the insurance dept told me my coverage ended at midnite the following Sunday.
Sound like the company is trying to squeeze you for something you do not owe.
Sadly, you may have to lawyer up to avoid having a claim file in court against you.
Different states have different laws concerning insurance. A call to your state insurance commission might help.EarlyTerminationCharges Thanks this. -
If you were an actual employee, then NO they cannot charge you any fees. Besides, whom ever they hire to replace you would just wind up balancing it out for them anyway.
EarlyTerminationCharges Thanks this. -
I have never heard of this, are you a driver or an oo?
EarlyTerminationCharges Thanks this. -
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EarlyTerminationCharges Thanks this.
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I don't know about your state, or what kind of deal your company has with their agent.
I used OOs for a few years, they paid their own insurance, but it was all on my policy. I had to put a down payment to add them on, but they didn't even bill me for it for 30 days, so they had time to run before it was due. I never had one quit, but I did put one one a time or two just for a week or two, and that is all I had to pay for, generally when you take one off, the insurance company reimburses you.
I switched insurance companies once and totaled the pickup in just over a week later. Mt insurance sent me a seperate check for all but about 10 bucks of what I had paid them for the insurance itself.EarlyTerminationCharges Thanks this. -
Like others have said. The typical answer is you pay insurance for the amount of time you're insured.
I've never heard of a early termination fee.
Best to consult with an attorney.
Good luck.Canucklehead, Diesel Dave and EarlyTerminationCharges Thank this. -
Actually it’s supposed to be the other way around. They prorate from the time you cancel your policy and if any monies is owed, you get reimbursed. But it takes about a month or two. Read you policy carefully. Maybe there is a fine print but I doubt it. Never heard of that.
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