Not upheld: Account administration errors complaint against Exeter Friendly Society Limited

Decision detail

Summary

Mr D complained that Exeter Friendly Society Limited unfairly declined to renew his private health insurance policy, collected a premium despite non-renewal, and prevented his benefit limits from resetting. Exeter Friendly notified Mr D in February 2025 that his policy would not be renewed effective 30 April 2025 due to the policy type no longer being offered, providing approximately two months' notice. The ombudsman found this commercial decision affecting all similar policyholders was fair and reasonable, that collection of the final quarterly premium was justified as cover remained in place, and that the non-renewal did not unfairly prevent benefit limit resets since the disputed October 2024 consultation occurred in a different policy year. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Exeter Friendly's decision not to renew the policy was a commercial decision affecting all policyholders of that type, with adequate notice provided. The collection of the final quarterly premium was reasonable because cover remained in place for those three months and Mr D could have made claims subject to policy terms. The non-renewal did not unfairly prevent benefit limits from resetting because the October 2024 consultation occurred in a different policy year than any potential reset, and Exeter Friendly's letter did not reasonably suggest otherwise.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website