Not upheld: Travel / life insurance claim disputes complaint against Intact Insurance Company Limited

Decision detail

Summary

Mr H complained that Intact Insurance unfairly avoided his home buildings insurance policy twice. First, Intact's surveyor incorrectly estimated that over 50% of his roof was flat, leading to policy avoidance; Mr H's own surveyor later showed the actual figure was approximately 43%. Second, Intact avoided the policy based on an incorrect interpretation of Mr H's roof construction material answer, which was actually reasonable given how the question was worded. Intact subsequently rescinded both avoidances and refunded Mr H's costs plus £1,500 compensation. The ombudsman did not uphold the complaint, finding that Intact had done enough to put matters right, though acknowledging the mistakes caused significant distress and inconvenience.

The Ombudsman's reasoning

The ombudsman acknowledged that Intact made two mistakes: first in relying on its surveyor's incorrect assessment of the flat roof percentage, and second in avoiding the policy based on an incorrect interpretation of Mr H's roof construction material answer. However, the ombudsman found that Intact had adequately remedied the situation by refunding all costs incurred by Mr H and paying £1,500 compensation. The ombudsman considered £1,500 to be fair compensation for the distress and inconvenience caused, aligning with the service's approach in such circumstances. The ombudsman declined to require further action or refer the matter to the FCA as a systemic issue, noting that the individual dispute had been resolved.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website