Not upheld: claims handling and compensation adequacy complaint against Assurant General Insurance Limited

Decision detail

Summary

Miss D claimed for a lost phone under her mobile phone insurance policy with Assurant. After the first replacement phone was not initially delivered, Miss D found it in the courier locker on 13 July but did not inform Assurant, leading Assurant to send a second replacement phone to her neighbour on 16 July. Assurant then blocked the first phone, causing Miss D inconvenience. Miss D also found and sold her original damaged phone for parts. Assurant upheld the complaint and paid £75 compensation, but Miss D sought more. The ombudsman found the compensation adequate, as the confusion partly resulted from Miss D's failure to communicate and Assurant was entitled to block the first phone under the policy terms.

The Ombudsman's reasoning

The ombudsman found that the confusion arose partly from Miss D's failure to inform Assurant that the first replacement phone had been delivered on 13 July, which led Assurant to proceed with sending a second replacement phone. Assurant was entitled to block the first phone once it confirmed the second phone was delivered, as the policy only provides one replacement. The ombudsman considered that had Miss D communicated promptly, the second phone would not have been sent and the first phone would not have been blocked. The slight delay in unblocking the first phone was addressed by the £75 compensation already paid. The ombudsman also noted Assurant pragmatically waived its entitlement to the proceeds from the sale of the original damaged phone.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website