Partially upheld: policy withdrawal following health declaration and fairness of alternative cover arrangements complaint against Astrenska Insurance Limited trading as Collinson Insurance

Decision detail

Summary

Mr and Mrs R complained about Astrenska's decision to withdraw their annual multi-trip travel insurance policy after Mr R declared a change in health mid-term. Astrenska offered only single-trip cover as an alternative. Mr and Mrs R had pre-booked holidays and obtained two alternative single-trip policies. The ombudsman found the withdrawal decision was fair and complied with policy terms, but applied FOS principles requiring the insurer to cover the cost of alternative cover. The complaint was partially upheld: Astrenska must refund £166 for Mrs R's single-trip policy (which matched original coverage) plus 8% interest, but not the £472 joint policy (which included cruise cover not in the original policy).

The Ombudsman's reasoning

The ombudsman found that Astrenska's decision to withdraw the annual multi-trip cover was fair and reasonable based on the health declaration and medical screening. The policy terms clearly allowed this action. However, the ombudsman applied the principle that when an insurer withdraws cover and the customer must obtain alternative cover, it is fair and reasonable for the insurer to cover the cost of that alternative cover up to the value of any cancellation claim that could have been made. For the September 2025 holiday, the policy included mandatory cruise cover not in the original policy, so no claim could have been made and no reimbursement was due. For the October 2025 holiday, Mrs R's single-trip policy matched the original coverage, so reimbursement was appropriate.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website