Upheld: Travel / life insurance claim disputes complaint against Bastion Insurance Company Limited
Financial Ombudsman decision DRN-5542654 of 2025-06-24T00:00:00+00:00. Travel / life insurance claim disputes complaint against Bastion Insurance Company Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-5542654 |
|---|---|
| Decision date | 2025-06-24T00:00:00+00:00 |
| Firm | Bastion Insurance Company Limited |
| Product | Other regulated product |
| Claim type | Travel / life insurance claim disputes |
| Outcome | Upheld |
| Remedy | Pay Mrs P the market value of her car at time of claim (or £1,500 policy limit if less), less £100 scrappage value received, plus £150 compensation for distress and inconvenience |
Summary
Mrs P claimed under the key cover element of her motor insurance policy with Bastion after losing her only car key in May 2024. Bastion referred the claim to a locksmith and then a dealership, but the dealership could not provide a replacement within a reasonable timeframe and eventually refused to do so. With no viable alternative solutions and unable to use her car without a key, Mrs P scrapped the vehicle in early 2025. The ombudsman upheld the complaint, finding Bastion failed to honour the policy and should compensate Mrs P for the market value of her car less scrappage proceeds, plus £150 for distress and inconvenience.
The Ombudsman's reasoning
Bastion failed to indemnify Mrs P as the policy set out, leaving her unable to use her car and forcing her to scrap it. Although Bastion made considerable efforts, they could have contacted the dealership sooner to check progress, done more to help identify alternative locksmiths, and confirmed sooner that the key part was obsolete. Mrs P should not bear the loss from Bastion's inability to honour the policy.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Bastion Insurance Company Limited, all decisions | 77 | 72% |
| Travel / life insurance claim disputes, all decisions | 20,052 | 31% |
| Other regulated product, all decisions | 47,871 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website