Not upheld: Home insurance claim disputes complaint against Euroins AD

Decision detail

Summary

Miss S claimed £5,806 for lost baggage on a travel insurance policy after receiving £1,441.27 from the airline. Euroins settled for £1,099.48 after applying policy limits (£3,500 maximum, £250 single item limit), a 10% annual depreciation formula, excluding jewellery not carried in hand luggage, and deducting the airline recovery. The ombudsman found all calculations and policy applications were fair and reasonable, upholding Euroins's settlement and rejecting Miss S's complaint.

The Ombudsman's reasoning

The ombudsman applied the policy terms systematically: the £5,806 claim exceeded the £3,500 maximum cover limit; individual items exceeded the £250 single item limit; depreciation deductions of 10% per year are industry standard and fair; jewellery (valuables) was not covered as it was not carried in hand luggage during transit; and the airline payment must be deducted as the policy only covers losses not recoverable from elsewhere. The calculated covered amount of £2,504.75 minus the airline recovery of £1,441.27 equals the settlement of £1,099.48, which is reasonable and in line with policy terms.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website