Not upheld: claim declined - timing of cover complaint against Advantage Insurance Company Limited

Decision detail

Summary

Mr H complained that Advantage Insurance Company Limited unreasonably declined his motor insurance claim following the theft of his newly purchased car. Mr H had added the car to his policy at 8:52 am on the day of theft, but Advantage declined the claim stating the car was not insured at the time of theft. Police CCTV evidence showed the car was stolen at 1:45 am, several hours before the policy was taken out. The ombudsman found that Mr H's midnight comparison quotes were for price comparisons only and there was no evidence he attempted to add the car to his policy before 8:52 am. The ombudsman upheld Advantage's decision, finding it fair and reasonable to decline the claim as the car was not covered during the period of theft.

The Ombudsman's reasoning

The ombudsman considered whether Advantage acted in line with the policy terms and fairly and reasonably. The policy requires the policyholder to have agreed to terms and paid the premium during the period of cover. Advantage's system records showed the policy was taken out at 8:52 am, after police CCTV evidence confirmed the theft occurred at 1:45 am. Mr H's midnight comparison quotes were for price comparisons only, not for adding the car to his existing Advantage policy. There was no evidence Mr H attempted to add the car before 8:52 am or was prevented by technical difficulties. Therefore, the car was not covered during the period of theft, and Advantage was only liable for claims occurring within the period of insurance.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website