Not upheld: Unknown / needs review complaint against Avon Insurance Plc

Decision detail

Summary

Mrs H complained that Avon Insurance Plc mis-sold her an accidental death insurance policy taken out in 1997. She claimed she was unaware she was being charged for the policy and only discovered it still existed in 2019 when she received a letter about a premium increase. Avon provided evidence that Mrs H had signed an application form in 1997 agreeing to the policy with full knowledge of its nature and cost, and that she had also agreed to increase her cover in 1998 and 1999. The ombudsman found no evidence of mis-selling, as Mrs H made an informed decision and actively agreed to the cover and subsequent increases. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman was satisfied that Mrs H made an informed decision to take out the policy in 1997, knowing what it cost, based on the clear mailing and her signed application form. She actively agreed to increase her cover in 1998 and 1999. Although Mrs H may have forgotten about the policy, this does not constitute mis-selling. Avon was not required to send ongoing communications about an active policy with no changes. Mrs H received notification of premium increases in 2015 and 2019. Since Mrs H was covered by the policy until cancellation and it would have paid benefit in the event of an eligible claim, there were no reasonable grounds for refunding premiums.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website