Upheld: Travel / life insurance claim disputes complaint against Extracover Limited
Financial Ombudsman decision DRN-6013632 of 2025-12-10T00:00:00+00:00. Travel / life insurance claim disputes complaint against Extracover Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6013632 |
|---|---|
| Decision date | 2025-12-10T00:00:00+00:00 |
| Firm | Extracover Limited |
| Product | Other regulated product |
| Claim type | Travel / life insurance claim disputes |
| Outcome | Upheld |
| Remedy | EL must: (1) refund the £94.29 cancellation fee; (2) refund the difference in premiums between what Mr A paid and what he would have paid if cancelled on 10 March 2025; (3) pay 8% simple interest on both refunds from payment date to refund date; (4) change cancellation records from insurer cancellation to consumer cancellation; (5) pay £100 compensation for distress and inconvenience. |
Summary
Mr A purchased a van insurance policy from Extracover Limited on 7 March 2025 that required downloading a telematics app. When Mr A experienced technical difficulties and called for support, EL promised a callback but failed to deliver. On day 17, EL sent app download instructions, and on day 18 notified Mr A the policy would be cancelled at end of day, charging a £94.29 cancellation fee plus 18% of the premium. The ombudsman found EL violated their own terms by providing only one warning and one day's notice before cancellation, when their terms required multiple warnings and a reasonable period. The ombudsman upheld the complaint and ordered EL to refund charges, pay interest, correct records, and pay £100 compensation.
The Ombudsman's reasoning
EL failed to follow their own terms and conditions which explicitly state customers should receive warnings and a reasonable period to install the app before cancellation. Mr A received only one warning on day 17 and was given one day's notice before cancellation. Had EL called Mr A back within two working days as promised, the issue would likely have been resolved during the 14-day cooling-off period, resulting in lower charges. The failure to provide promised support and the unreasonably short notice period before cancellation was unfair and unreasonable.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Extracover Limited, all decisions | 25 | 52% |
| Travel / life insurance claim disputes, all decisions | 19,183 | 32% |
| Other regulated product, all decisions | 51,105 | 30% |
Source
Read the original decision on the Financial Ombudsman Service website