Not upheld: Account administration errors complaint against Uinsure Limited

Decision detail

Summary

Mr and Mrs W complained that Uinsure failed to notify them that their home insurance policy's automatic renewal payment had failed, resulting in policy cancellation. Uinsure sent a letter on 26 June 2023 to their last known address explaining the Direct Debit failure and giving 28 days to make payment before cancellation. Mr and Mrs W claim they did not receive this letter and only learned of the cancellation in January 2024 when attempting to make a claim. The ombudsman found that Uinsure acted fairly and in line with policy terms by sending written notice to the correct address, and was not responsible for the letter not being received as recorded delivery is not required. The ombudsman also found it reasonable for customers to check that renewal payments had been processed, particularly given Mr W's recent bank account switch.

The Ombudsman's reasoning

The ombudsman found that Uinsure complied with its policy terms and industry rules by sending written notice to the last known address. While Mr and Mrs W claim they did not receive the June 2023 letter, there is no requirement for businesses to send letters by recorded delivery. The ombudsman considered it reasonable for customers, particularly those who had recently switched bank accounts, to check that renewal payments had been processed. Uinsure had put Mr and Mrs W on notice on 9 June 2023 that the renewal premium was due. The ombudsman concluded that Uinsure took reasonable steps in line with the policy to notify of cancellation when payment was not received.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website