Not upheld: policy cancellation and fraud marker registration; fronting and misrepresentation complaint against Marshmallow Insurance Limited

Decision detail

Summary

Mr S complained that Marshmallow Insurance Limited unfairly cancelled his motor insurance policy and registered a Cifas fraud marker against him. The policy was applied for in June 2025 using Mr S's details, but with an incorrect residential address and naming Mr S as the owner and main driver of a car that actually belonged to his friend. When Marshmallow requested proof of address, Mr S passed the request to his friend, who submitted altered bank statements. Mr S admitted he had agreed to his friend applying for the policy using his details but claimed he did not alter the documents and had nothing to gain from the policy. The ombudsman found that Mr S was complicit in 'fronting' and was ultimately responsible for the misrepresentation, and that Marshmallow had reasonable grounds to cancel the policy and make a Cifas referral, so the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Mr S was complicit in 'fronting' - applying for a policy using someone else's details - which is considered fraudulent in the insurance industry. Although Mr S claimed he did not alter the documents himself, he was ultimately responsible for the accuracy of information submitted on his behalf, as he had authorized his friend to act for him. The ombudsman noted that Mr S could have submitted the proof of address himself but chose to pass the request to his friend, and he failed to correct the incorrect address when policy documents were issued to him. The ombudsman concluded that Marshmallow had reasonable grounds to make a Cifas referral based on Mr S's complicity in the misrepresentation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website