Not upheld: inadequate claims handling assistance and service failures by insurance intermediary complaint against Saga Services Limited

Decision detail

Summary

Mrs B complained that Saga Services Limited failed to provide clear policy guidance and direct her to the correct insurer in a timely manner after her building and contents insurance claim was declined due to moth infestation damage. She also complained about ambiguous policy wording, an incorrect email address, and unwanted marketing material. Saga acknowledged it could have provided better explanations about home emergency cover and made errors with marketing preferences, paying £75 compensation. The ombudsman found that while Saga's initial handler did not appropriately set expectations about coverage, subsequent interactions were handled appropriately, and the £75 compensation reasonably acknowledged the distress and inconvenience caused by Saga's errors. The ombudsman could not hold Saga responsible for the insurers' claim decisions or policy wording, and found the complaint not upheld.

The Ombudsman's reasoning

The ombudsman acknowledged that Saga, as an insurance intermediary rather than insurer, could not be held responsible for the insurers' handling of claims. However, Saga could be assessed on the assistance it provided. While the initial handler gave Mrs B the impression her home emergency policy would cover her claim without appropriately setting expectations, subsequent calls were handled appropriately. The errors made (failure to set expectations, incorrect marketing preferences change, and wrong email address) caused distress and inconvenience, but the £75 compensation already paid reasonably acknowledged these failures. The ombudsman could not hold Saga responsible for ambiguous policy wording (the insurer's responsibility) or for Mrs B being passed between different insurers and agents (which was reasonable given the circumstances).

How this compares

Source

Read the original decision on the Financial Ombudsman Service website