Upheld: unfair claim handling and premature policy cancellation complaint against Domestic & General Insurance Plc

Decision detail

Summary

Ms M complained about D&G's handling of a claim for her faulty fridge freezer water dispenser, which resulted in the service plan being cancelled and replaced with an offer of a replacement appliance. Ms M preferred repair to replacement and had consistently expressed this preference, and a conversation on 6 October 2025 suggested the required part might still be obtained. The ombudsman upheld the complaint, finding that D&G acted too early in cancelling the policy without giving Ms M the opportunity to decide between repair and replacement, and ordered £200 compensation for the distress and inconvenience caused, in addition to the £346 already paid by D&G.

The Ombudsman's reasoning

While D&G was contractually entitled to cancel the policy and offer a replacement under the policy terms, the ombudsman found that D&G acted too early in doing so. The conversation on 6 October 2025 indicated the required part might still be obtained, and Ms M had consistently expressed her preference for repair. The ombudsman concluded that Ms M was caused distress by the premature cancellation when she still believed repair was possible, and that £200 compensation was fair given Ms M had indicated the matter was affecting her mental health. The ombudsman noted this compensation was in addition to the £346 already paid by D&G.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website