Not upheld: policy cancellation based on suspected fraudulent documentation complaint against Marshmallow Insurance Limited

Decision detail

Summary

Mr A purchased car insurance from Marshmallow in February 2025, claiming six years' No Claims Discount from an overseas insurer. Marshmallow validated the supporting documentation and found it to be likely fraudulent with inconsistencies that did not align with Mr A's account. Marshmallow cancelled the policy with seven days' notice and provided a partial refund. Mr A complained about the cancellation and its impact on his future insurance premiums. The ombudsman found that Marshmallow acted fairly and reasonably in investigating the document and cancelling the policy in accordance with the policy terms, and therefore did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that Marshmallow acted fairly and reasonably in cancelling the policy because: (1) the proof of NCD document contained inconsistencies that suggested it was fraudulent; (2) Marshmallow's investigation was thorough and fair; (3) the cancellation was in line with the policy terms and conditions which permit termination for fraudulent conduct; (4) Marshmallow provided seven days' notice rather than immediate termination and offered a partial refund, both of which were fair.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website