Upheld: misleading communication and failure to respond to customer concerns complaint against Domestic & General Insurance Plc

Decision detail

Summary

Mr A held an appliance insurance policy with D&G covering his washing machine. When the machine was written off, D&G arranged for company M to supply and install a replacement, but the installation failed and caused a water leak, costing Mr A £150 to fix. Although the policy terms stated D&G was not responsible for installation, D&G's email to Mr A indicated installation was included, and D&G did not respond to Mr A's concerns. The ombudsman found D&G acted unfairly by creating a misleading impression and failing to support Mr A, ordering £200 compensation. A separate complaint about a premium increase notification following policy cancellation was not upheld as D&G resolved it fairly.

The Ombudsman's reasoning

Although the policy terms clearly stated D&G was not responsible for installation costs, D&G's email to Mr A gave the impression that installation was included and D&G was responsible. The listing of installation under 'extra services' without explanation did not reasonably convey to Mr A that he was responsible for it. When the installation failed, D&G did not respond to Mr A's concerns, causing distress and inconvenience. D&G acted unfairly by creating a misleading impression and then failing to support Mr A when problems arose. The policy cancellation and premium notification were handled appropriately by D&G.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website