Not upheld: unfair claim rejection complaint against Financial & Legal Insurance Company Ltd

Decision detail

Summary

Miss E claimed on her key cover policy after the blade of her car key became detached and was lost, but she could not explain how this occurred. Financial & Legal declined the claim, reasoning that without a specific incident, the damage was likely due to wear and tear or defect, both of which are excluded under the policy. Miss E complained about the claim rejection and the firm's delayed response, and also sought reimbursement for a £50 replacement fob. The ombudsman upheld Financial & Legal's decision, finding that the policy terms were fairly applied and that the delay in responding did not affect the claim outcome or warrant compensation.

The Ombudsman's reasoning

The ombudsman found that Financial & Legal acted within the policy terms by declining the claim. Since Miss E could not identify a specific event causing the damage, it was more likely than not that the blade fell off due to wear and tear or lack of maintenance, which are excluded under the policy. The ombudsman noted that wear and tear is not always visible and can develop over time, particularly given the car's 2018 registration. The delay in returning Miss E's call did not change the condition of the key or the reason for claim denial, and therefore did not warrant compensation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website