Not upheld: Home insurance claim disputes complaint against ARAG Legal Expenses Insurance Company Limited

Decision detail

Summary

Mr B complained that ARAG unfairly declined his legal expenses insurance claim relating to a flight delay on 31 May 2024 and subsequent court proceedings. The policy started on 20 June 2024, after both the flight delay and the initial court claim were filed. ARAG declined the claim on the basis that the originating event predated the policy. The ombudsman found that ARAG fairly applied the policy terms, which exclude cover for events occurring before the policy start date, and that the subsequent legal proceedings formed a chain of events stemming from the pre-policy flight delay. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while the default judgement and challenge occurred after the policy started, they were part of a chain of events stemming from the flight delay that happened before the policy commenced. The policy explicitly excludes cover for events occurring before its start date. ARAG fairly applied this contractual term by declining the claim, as the originating cause (the flight delay) predated the policy.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website