Not upheld: claim refusal based on misrepresentation of eligibility criteria complaint against Astrenska Insurance Limited trading as Collinson Insurance

Decision detail

Summary

Mr T purchased gadget insurance from Astrenska on 24 March 2025, falsely claiming to be a permanent UK resident when he actually had pre-settled status. When three gadgets were stolen in May 2025, Mr T made a claim which Astrenska declined after discovering his misrepresentation of residency status. Astrenska cancelled the policy and refunded all premiums. The ombudsman found that Mr T made a qualifying misrepresentation under CIDRA 2012, that the application form clearly stated the eligibility requirement, and that Astrenska correctly applied the statutory provisions by declining the claim and refunding premiums. Although Mr T subsequently obtained settled status, he had not received it at the time of application or claim, making his original statement inaccurate.

The Ombudsman's reasoning

The ombudsman found that Astrenska correctly applied CIDRA 2012 provisions. Mr T made a qualifying misrepresentation by incorrectly stating he was a permanent UK resident when he actually had pre-settled status. The application form clearly defined the residency requirement and Mr T was required to answer truthfully. Although Mr T was entitled to settled status, he had not received it at the time of application or claim. The misrepresentation was careless rather than deliberate or reckless, and CIDRA permits cancellation with full premium refund in such cases. Insurers have commercial discretion to set eligibility criteria, and the ombudsman has no authority to override this or require insurers to cover risks they choose not to cover.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website