Not upheld: Other regulated complaint complaint against DEVITT INSURANCE SERVICES LIMITED

Decision detail

Summary

Mr B complained that Devitt cancelled his motorcycle insurance policy one day early, resulting in a declined theft claim when his motorcycle was stolen on 16 October 2024. Mr B had called Devitt on 14 October to cancel his policy, stating he would store his motorcycle on 16 October and no longer need cover 'as of the 16th'. Devitt sent a cancellation letter confirming the policy was cancelled 'with effect from 16th October 2024'. Mr B believed cover would remain until 11.59pm on 16 October because no specific time was mentioned. The ombudsman found that 'with effect from 16 October' reasonably means no cover from that date onwards, and that Mr B's own words during the call supported this interpretation. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that 'with effect from 16 October 2024' reasonably means the cancellation begins to apply on that date, resulting in no cover from 16 October onwards. The ombudsman noted that Mr B explicitly stated 'as of the 16th my insurance is no longer valid' during the call, and Devitt's agent confirmed this understanding. The ombudsman acknowledged that no specific time was given but found this is not uncommon in the insurance industry, as policy schedules typically show expiry dates without times. The ombudsman concluded that if Mr B intended to use his motorcycle on 16 October, he should have verified cover was in place.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website