Not upheld: policy cancellation and debt recovery procedures complaint against Yoga Insurance Services Limited

Decision detail

Summary

Mrs H complained that Yoga Insurance Services Limited unfairly cancelled her motor insurance policy and pursued her for outstanding premiums after her direct debit failed. She claimed she attempted to update her payment details through Yoga's portal but encountered technical problems, and that the insurer would not cover her new address. Yoga cancelled the policy on 14 April 2025 after sending a seven-day notice, and subsequently arranged debt recovery for the outstanding balance. The ombudsman found that Yoga's actions were fair and complied with the policy terms, which explicitly permitted cancellation for non-payment and debt recovery when claims were open. The ombudsman also clarified that the insurer's underwriting decisions regarding the new address were not Yoga's responsibility as the broker.

The Ombudsman's reasoning

The ombudsman found that Yoga's policy terms explicitly permitted cancellation when premium payments could not be collected, and that Yoga provided reasonable notice through multiple channels (text, email, and letter). Although Mrs H experienced difficulties updating her payment details through the portal, the cancellation notices were clear and a reasonable person would have understood the consequences of non-payment. The presence of an open claim meant that the policy terms justified refusing a refund and pursuing the outstanding premium through a debt recovery agent. The ombudsman also clarified that the insurer's decision not to cover Mrs H's new address was not Yoga's responsibility as the broker.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website