Upheld: Unknown / needs review complaint against USAY BUSINESS LTD

Decision detail

Summary

Mr and Mrs B purchased private medical insurance from USAY in August 2024 and were incorrectly told they would receive a 10% multi-policy discount. The discount was only available to new customers, and Mr and Mrs B did not qualify. After receiving two months of cover at the enhanced price, they cancelled the policy. They sought a refund of premiums, an apology, and compensation for distress. The ombudsman upheld the complaint but rejected the premium refund request, finding the customers had received actual insurance value. The ombudsman also found no evidence of rude conduct by USAY staff. USAY was ordered to pay £200 compensation for the inconvenience caused by the misinformation.

The Ombudsman's reasoning

The ombudsman found that USAY made a clear error in the sales process by informing Mr and Mrs B of a discount they did not qualify for. However, the ombudsman rejected the request for a full refund of premiums because Mr and Mrs B received two months of actual insurance cover which had value - had they made a successful claim, the policy would have paid benefit. The ombudsman also found no evidence of rude or unprofessional conduct in the call recordings, though accepted that both Mr and Mrs B were inconvenienced by the misinformation about the introductory offer.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website