Not upheld: PPI mis-selling complaint against Avon Insurance Plc

Decision detail

Summary

Mrs T complained on behalf of her late son's estate that Avon Insurance Plc mis-sold an accidental death policy to Mr T in 1990, believing it was a condition of his NatWest loan and unsuitable for a healthy 23-year-old graduate. Mr T had selected £60,000 of additional cover at £8.85 per month beyond the free £1,000 offer. The ombudsman found no mis-selling because the sale was non-advised, the marketing materials clearly distinguished between free and paid cover with stated costs, and Mr T made an active choice to apply for the additional cover. The complaint was not upheld and no refund was ordered.

The Ombudsman's reasoning

The ombudsman distinguished between advised and non-advised sales. Since this was a non-advised sale based on postal marketing, Avon did not have the same obligations as if it had provided personal advice. The marketing materials clearly explained the free cover offer and the separate, distinct process for purchasing additional cover with stated monthly premiums. Mr T actively chose to apply for £60,000 of additional cover by completing and returning the form with his direct debit details. The ombudsman found the documentation sufficiently clear about costs and terms, and that Mr T made an informed choice to purchase the additional cover.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website