Partially upheld: policy cancellation, reinstatement refusal, poor communication, delayed refund of payments complaint against ReAssure Limited
Financial Ombudsman decision DRN-6039389 of 2026-06-09T00:00:00+00:00. policy cancellation, reinstatement refusal, poor communication, delayed refund of payments complaint against ReAssure Limited. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6039389 |
|---|---|
| Decision date | 2026-06-09T00:00:00+00:00 |
| Firm | ReAssure Limited |
| Product | Life / income protection |
| Claim type | policy cancellation, reinstatement refusal, poor communication, delayed refund of payments |
| Outcome | Partially upheld |
| Remedy | ReAssure Limited must pay Ms I: (1) £58.99 for the late refund of premium payments; (2) £300 for distress and inconvenience caused by errors in handling the reinstatement request, including failure to provide clear answers to questions about reinstatement requirements and delayed return of premium payments. |
Summary
Ms I held a 25-year Level Term Life and Critical Illness Insurance Policy with ReAssure. After missing a premium payment in August 2023 due to banking changes, ReAssure cancelled the policy in September 2023 following the 30-day grace period. When Ms I requested reinstatement in October 2023, ReAssure required her to provide a Declaration of Health, a new direct debit mandate, and back payments within 12 months. Ms I questioned why a DOH was needed for a non-reviewable policy and claimed she had asked this question multiple times without receiving clear answers. She set up a standing order to maintain payments while seeking clarification, but ReAssure did not accept these payments and returned them only in June 2025. The ombudsman found ReAssure was entitled to cancel and refuse reinstatement but upheld the complaint regarding its failure to provide clear explanations for its requirements and its delayed return of premium payments, awarding £300 compensation plus interest.
The Ombudsman's reasoning
The ombudsman found that ReAssure was within its contractual rights to cancel the policy for non-payment within the 30-day grace period and to refuse reinstatement when the required information was not provided within the 12-month window. However, ReAssure made errors in its communication by failing to provide clear explanations for why a DOH was required for a non-reviewable policy despite Ms I asking multiple times, and by delaying the return of standing order premium payments from 2 September 2024 to 18 June 2025. These errors caused Ms I frustration, confusion, and inconvenience. The ombudsman considered the pattern of repeated small errors requiring reasonable effort to resolve and determined that £300 compensation was appropriate, along with 8% simple interest on the delayed refund of £58.99.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| ReAssure Limited, all decisions | 1,045 | 32% |
| Life / income protection, all decisions | 10,405 | 21% |
Source
Read the original decision on the Financial Ombudsman Service website