Not upheld: claim decline - no cover under policy terms complaint against Red Sands Insurance Company (Europe) Limited

Decision detail

Summary

Ms A and Mr O claimed on their travel insurance policy for emergency accommodation and unused trip costs after their honeymoon flight was diverted back to the UK due to a missile attack closing airspace. They rebooked a flight the following day and continued their trip one day late. Red Sands declined the claim as the policy terms did not cover their circumstances. The ombudsman upheld Red Sands' decision, finding that because the customers did not cancel or abandon their trip but instead rebooked and continued it, no cover applied under the Cancellation or Abandonment benefits. The ombudsman also noted that even if they had abandoned the trip entirely, the claim would have been excluded under the policy's war and terrorism exclusion clause.

The Ombudsman's reasoning

The ombudsman found that the policy terms do not cover the circumstances because Ms A and Mr O did not cancel their trip - they made alternative arrangements and continued it. Therefore, they did not meet the conditions for either the Cancellation benefit or the Abandonment benefit. Additionally, even if they had abandoned the trip, the claim would have been excluded under the war and terrorism exclusion clause due to the missile attack. The ombudsman concluded that Red Sands reasonably declined the claim in accordance with the policy terms.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website