Not upheld: claim declined - non-compliance with policy terms complaint against Great Lakes Insurance UK Limited

Decision detail

Summary

Mr H claimed on his travel insurance policy after his diamond engagement ring was stolen from a drawer in his locked hotel room. Great Lakes initially declined the claim citing a name mismatch, which it later accepted was unfair and paid £150 compensation. Great Lakes also declined the claim because the policy terms require valuables to be stored in a safe, safety deposit box, or similar locked receptacle, and Mr H's ring was in a hotel room drawer. The ombudsman upheld Great Lakes' second reason for decline, finding the policy terms were clear and commonly used in travel insurance, and that the hotel's failure to inform Mr H about the safe did not obligate Great Lakes to pay the claim.

The Ombudsman's reasoning

The policy terms explicitly state that valuables will not be covered unless they are attended by the policyholder or left in hotel security, a safety deposit box, safe or similar locked fixed receptacle. Mr H left the ring in a drawer in a locked hotel room, which does not meet these specific requirements. The ombudsman found these terms are common in travel insurance policies and insurers are entitled to require additional security measures for high-value items such as jewellery. The fact that the hotel did not inform Mr H about the safe does not obligate Great Lakes to pay the claim.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website