Not upheld: claim declined - not covered by policy terms complaint against AWP P&C S.A.

Decision detail

Summary

Mr L held travel insurance with AWP and missed his booked flight due to a fire in an airport lounge that prevented him from passing through security in time. He purchased an alternative flight from another airport and claimed for his additional costs. AWP declined the claim as the circumstances were not covered under the policy's 'Travel delay and missed departure' section. Mr L complained that AWP's interpretation was overly restrictive and did not reflect reasonable consumer expectations for protection against unforeseen disruption. The ombudsman upheld AWP's decision, finding that while the event was genuinely unavoidable, it did not fall within the specifically listed covered reasons in the policy, and insurers are entitled to define the scope of their coverage.

The Ombudsman's reasoning

The ombudsman found that Mr L's situation did not fall within any of the covered reasons listed in the 'Travel delay & missed departure' policy section. While the fire was a natural disaster as defined in the policy, it occurred at the airport lounge where Mr L was waiting, not as a travel carrier delay or other specifically covered reason. The ombudsman acknowledged the event was unforeseen and unavoidable but concluded that travel insurance does not cover every scenario and it is for insurers to decide what risks they want to insure. The fact that the airport and airline referred Mr L to his travel insurer does not obligate AWP to pay.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website