Not upheld: policy cancellation processing and record-keeping complaint against Aviva Insurance Limited

Decision detail

Summary

Mr S complained that Aviva unfairly processed the cancellation of his motor insurance policy and recorded it as a cancellation for non-payment. Mr S claimed he cancelled the policy within the 14-day cooling-off period following automatic renewal in October 2025, first via the online portal and then by email. Aviva had no record of the portal cancellation and Mr S's email was sent to a 'no reply' address, so Aviva continued to chase payment of the full £189.86 premium and ultimately cancelled the policy for non-payment on 10 November 2025. Mr S complained about stress, anxiety, and alleged reputational damage from the cancellation marker affecting his future premiums. The ombudsman found that Aviva acted reasonably given the circumstances, as there was no evidence of the cancellation request being received, and Aviva's offer to waive the pro-rata premium and backdate the cancellation was fair. The ombudsman confirmed that no cancellation marker was recorded on external databases and that Mr S's premium increase from his new insurer related to a separate 2024 accident claim. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Aviva acted reasonably given the information available to it at the time. There was no evidence that Mr S's cancellation request was successfully logged on the portal, and his email was sent to a monitored 'no reply' address that does not accept inbound messages. Therefore, Aviva was not unreasonable in continuing to chase payment and issuing a cancellation notice. Aviva's subsequent actions—waiving the pro-rata premium and offering to backdate the cancellation—appropriately recognised Mr S's belief that he had cancelled, even though Aviva was unaware of his request at the time. The ombudsman was satisfied that no cancellation marker was recorded on external databases, and the premium increase from Mr S's new insurer related to a separate 2024 accident claim, not the cancellation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website