Not upheld: failure to notify of policy flexibility removal and alleged inability to reduce cover complaint against Scottish Widows Limited

Decision detail

Summary

Mr B complained that Scottish Widows removed the flexibility of his Protection 4 Life policy without notifying him, preventing him from reducing his cover when needed for affordability reasons due to ill health and reduced income. The ombudsman found that the removed flexibility concerned only the ability to increase cover through additional policies, not reduce it, and that Mr B was clearly informed during his 19 September 2023 call that he could reduce his cover level. No evidence supported Mr B's claim of previous unsuccessful attempts to reduce cover over several months. The ombudsman upheld the £150 compensation already paid by Scottish Widows as fair and reasonable, and declined to order further action.

The Ombudsman's reasoning

The ombudsman found that even if Scottish Widows should have notified Mr B of the removed flexibility to increase cover, this would not have impacted his position because he sought to reduce (not increase) cover, and the ability to reduce cover remained available. The call handler initially misunderstood Mr B's request but quickly clarified that cover reduction was possible. No evidence supported Mr B's claim of previous denials to reduce cover. The £150 compensation was deemed fair given the brief confusion during the call and Mr B's circumstances.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website