Not upheld: unfair claim decline complaint against Red Sands Insurance Company (Europe) Limited

Decision detail

Summary

Mr W claimed on his bicycle insurance policy after his bicycle was stolen from his shed. Red Sands declined the claim, stating that Mr W had not met the security conditions requiring the bicycle to be locked to an immovable object. Mr W had initially locked it to a wooden pillar and later claimed it was locked to a mini trampoline. The ombudsman found that neither option constituted an 'immovable object' as defined in the policy (a solid concrete or steel object not capable of removal without specialised equipment), and therefore Red Sands reasonably declined the claim. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Red Sands reasonably concluded Mr W had not met the security conditions because neither a wooden pillar nor a mini trampoline constitutes an 'immovable object' as defined in the policy. A wooden pillar is not made of concrete or steel, and a trampoline is inherently moveable despite being partially affixed to the shed wall. The absence of evidence that the lock was overcome suggests the failure to comply with the security condition was material to the loss. The ombudsman also found Red Sands acted reasonably in not visiting the property, as Mr W had provided sufficient information about the security measures.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website