Not upheld: Home insurance claim disputes complaint against Tokio Marine Kiln Insurance Limited

Decision detail

Summary

Mr and Mrs C claimed on their travel insurance policy after their passports were stolen in South America, preventing them from using their return flights. They incurred substantial expenses making alternative arrangements. Tokio Marine Kiln Insurance Limited paid £500 to each claimant under the loss of passport section. Mr and Mrs C complained that the policy should have covered replacement documents plus reasonable additional expenses without the £500 limit. The ombudsman found the policy wording reasonably clear that the £500 limit applied to both replacement costs and additional expenses combined, and that this limit was adequately communicated in the benefits summary table. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman examined the policy wording and found it reasonably clear that the £500 limit applied to both passport replacement costs and additional expenses combined, not separately. The limit was prominently displayed in the benefits summary table, which was sufficient to draw it to the customers' attention. Although the wording could have been more user-friendly and the limit was significant, it was not unusual for such terms. The ombudsman therefore considered it fair and reasonable to apply the policy terms as written, despite the customers' actual expenses being much higher.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website