Not upheld: Home insurance claim disputes complaint against Millenium Insurance Company Limited

Decision detail

Summary

Mr A claimed on his motor warranty with MICL for damage to a coil spring, tyre, and brake hose. MICL accepted the claim for the coil spring but declined the tyre and brake hose. Mr A complained that the decline was unfair and that consequential loss should be covered. The ombudsman found that the policy terms explicitly exclude tyres and brake hoses as components, and that the policy does not include consequential loss coverage. The ombudsman upheld MICL's decision as fair and in accordance with the policy terms and industry standards.

The Ombudsman's reasoning

The ombudsman applied FCA rules requiring insurers to deal with claims promptly and fairly without unreasonably declining them. The policy terms explicitly exclude tyres and brake hoses as components not covered, regardless of the type of damage. The policy does not include consequential loss coverage, and the ombudsman found the exclusion of specific components is clear and unambiguous. Labour costs for the covered coil spring were assessed fairly in accordance with industry standards.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website