Not upheld: policy administration, policy review, provision of information complaint against Aviva Life & Pensions UK Limited

Decision detail

Summary

Mr and Mrs W, as trustees of the W Trust, complained about Aviva's administration of a reviewable whole of life policy taken out in 1994. In 2024, Aviva conducted a policy review and proposed significant changes to the sum assured and premiums, initially providing incorrect information before correcting it and offering £500 compensation. Mr and Mrs W argued they had not been provided with a policy meeting their original requirements and were unhappy with the reduction in sum assured and cash-in value projections. The ombudsman found that Aviva acted within their contractual rights, had provided sufficient information through multiple reviews since 2009 warning of necessary changes, and that Mr and Mrs W had declined specific mitigation options in 2021 despite being aware of the consequences. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Aviva had contractual rights to review and modify the policy, and that the costs of providing cover had significantly exceeded premiums being paid. While Aviva did not provide explicit details of the cost of providing cover, Mr and Mrs W had been given sufficient information through multiple policy reviews since 2009 warning of future changes and offering options to mitigate them. The ombudsman noted that Mr and Mrs W had declined specific options in 2021 despite being aware that inaction would result in more significant changes later. The errors made in 2024 were corrected and fair compensation was offered.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website