Not upheld: poor customer service in claims handling complaint against Domestic & General Insurance Plc

Decision detail

Summary

Miss B claimed on her mobile phone insurance policy after her phone was stolen on 10 June 2025. D&G provided a replacement refurbished phone which proved faulty, then provided a second replacement on 9 July 2025. The second phone also failed after water exposure at the beach. Miss B complained and requested refund of all premiums paid since 2021, but D&G refunded only 2025 premiums citing customer service issues and requested examination of the second phone. The ombudsman found D&G acted reasonably within policy terms and industry standards, adequately compensated Miss B for service failings, and was entitled to request phone examination given possible water damage.

The Ombudsman's reasoning

The ombudsman found that D&G acted within policy terms by providing refurbished phones as replacements for theft claims, which is standard industry practice. D&G acted reasonably in replacing the first faulty phone swiftly. Regarding the second phone, D&G was entitled to request examination to determine whether failure was due to water damage or manufacturing fault, particularly since Miss B did not report the fault until after water exposure. D&G's refund of 2025 premiums adequately compensated for customer service failings. Miss B had a duty to mitigate loss by allowing examination. Previous years' premiums should not be refunded as Miss B had benefit of annual cover and raised no complaint about the policy sale or terms awareness.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website