Upheld: Other regulated complaint complaint against Newline Insurance Company Limited
Financial Ombudsman decision DRN-4024428 of 2023-04-03T00:00:00+00:00. Other regulated complaint complaint against Newline Insurance Company Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-4024428 |
|---|---|
| Decision date | 2023-04-03T00:00:00+00:00 |
| Firm | Newline Insurance Company Limited |
| Product | Other regulated product |
| Claim type | Other regulated complaint |
| Outcome | Upheld |
| Remedy | Newline Insurance Company Limited must: (1) reinstate Ms G's dog's lifetime cover policy from February 2022 once Ms G has paid the outstanding premiums (with Newline to accept reasonable instalment payments if Ms G cannot pay in one lump sum); (2) pay Ms G £250 compensation for distress and inconvenience; (3) offer Ms G renewal of the policy from February 2023 on the policy terms it would have offered if it had not cancelled the 2022 policy. |
Summary
Ms G held a lifetime pet insurance policy for her dog with Newline Insurance Company Limited since 2015. When Newline could not collect the February to March 2022 premium, it sent emails to an email address that had been closed since June 2016, receiving failed delivery messages. Newline subsequently sent letters by post on 2 March 2022 and 11 March 2022, but Ms G did not receive the cancellation letter until 4 April 2022. Ms G immediately contacted Newline and offered to pay the outstanding premium, but Newline refused to reinstate the policy. The ombudsman found that Newline breached its own policy terms by cancelling before 14 days had elapsed from Ms G's receipt of notice, and that Ms G's offer to pay was made within the required timeframe. The ombudsman upheld the complaint and ordered Newline to reinstate the policy from February 2022 (once Ms G paid outstanding premiums) and pay £250 compensation for distress and inconvenience.
The Ombudsman's reasoning
The ombudsman found that Newline did not cancel the policy in accordance with its policy terms. The policy terms required that if a premium could not be collected, Newline would write requesting payment within 14 days of receipt, and if payment was not received within 14 days of receipt, the policy would be cancelled. Although Newline sent letters by post on 2 March 2022 and 11 March 2022, Ms G did not receive the cancellation letter until 4 April 2022. She contacted Newline on 4 April 2022 and offered to pay the outstanding premium, which was within 14 days of her receipt of the notice. Therefore, Newline cancelled the policy prematurely and unfairly. The ombudsman also found that Ms G acted reasonably in not taking out alternative insurance, as her dog's pre-existing condition would be excluded. Reinstatement is the fair remedy to restore Ms G to the position she would have been in had the policy not been wrongly cancelled, and compensation of £250 is appropriate for the distress and inconvenience caused.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Newline Insurance Company Limited, all decisions | 16 | 19% |
| Other regulated complaint, all decisions | 19,202 | 17% |
| Other regulated product, all decisions | 52,408 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website