Upheld: unfair policy cancellation; misleading communications complaint against Aviva Insurance Limited
Financial Ombudsman decision DRN-6006004 of 2026-04-28T00:00:00+00:00. unfair policy cancellation; misleading communications complaint against Aviva Insurance Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6006004 |
|---|---|
| Decision date | 2026-04-28T00:00:00+00:00 |
| Firm | Aviva Insurance Limited |
| Product | Motor insurance |
| Claim type | unfair policy cancellation; misleading communications |
| Outcome | Upheld |
| Remedy | Aviva must: (1) Remove the cancellation marker from its records and any external databases it has updated, and write to Mr T confirming this and that he does not need to disclose the cancellation to future insurers; (2) Pay £100 compensation to Mr T for distress and inconvenience caused (if not already paid); (3) Waive the outstanding balance of £58.54. |
Summary
Mr T's motor insurance policy with Aviva was cancelled in August 2025 due to non-payment of the July 2025 direct debit instalment. Aviva sent default notices and cancellation warnings in July 2025, but on the evening before the scheduled cancellation, sent Mr T an email confirming the outstanding balance would be spread over the remaining nine monthly payments. Mr T did not make a payment based on this reassuring communication. The ombudsman upheld Mr T's complaint, finding that Aviva's email created a reasonable expectation the matter was resolved, making the subsequent cancellation unfair. Aviva was directed to remove the cancellation marker from its records and external databases, and pay £100 compensation.
The Ombudsman's reasoning
The ombudsman found that Aviva's email sent the evening before cancellation, confirming the outstanding balance would be spread over nine monthly payments, was misleading and unfair. This communication reassured Mr T that the matter had been resolved, which explains why he did not contact Aviva to make a payment. The ombudsman concluded that Aviva was not fair in cancelling the policy after sending this reassuring email, as it created a reasonable expectation that the outstanding amount would be managed through the spreading arrangement.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Aviva Insurance Limited, all decisions | 5,075 | 27% |
| Motor insurance, all decisions | 23,874 | 35% |
Source
Read the original decision on the Financial Ombudsman Service website