Partially upheld: Motor insurance, claim handling complaint against Euroins AD

Decision detail

Summary

Mrs T claimed on her travel insurance policy after her hotel room was burgled during a trip, resulting in loss of belongings, medication, and equipment. She claimed for stolen personal possessions, money in her suitcase, a mobile phone, and curtailment costs. Euroins settled the personal possessions claim subject to wear and tear deductions but declined the money, mobile phone, and curtailment claims. The ombudsman upheld the complaint in part, finding that whilst curtailment and the mobile phone claim were properly declined as not covered by policy terms, fairness required Euroins to settle the money claim because the entire safe was stolen from another guest's room, making it probable the money would have been stolen even if secured in a safe. The ombudsman awarded £100 compensation for distress and inconvenience.

The Ombudsman's reasoning

The ombudsman found that whilst curtailment due to burglary and loss of belongings is not an insured peril under the policy terms, the claim for money in the suitcase should be upheld on grounds of fairness. The ombudsman determined that the money would likely have been stolen even if secured in a safe, given that the entire safe was removed from M's room, making it fair and reasonable for Euroins to settle this claim despite it not being in a locked safety deposit box as required by policy terms. The ombudsman preferred Euroins' medical officer's evidence that medication could have been obtained locally over Mrs T's assertion that it was unavailable, and therefore found no basis to require Euroins to cover curtailment costs. The ombudsman found Euroins' handling of the personal possessions claim to be fair and reasonable, including appropriate wear and tear deductions.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website