Not upheld: policy cancellation and underwriting decision complaint against Saga Services Limited

Decision detail

Summary

Mrs B and Mr W complained to Saga about the cancellation of their annual travel insurance policy and the offer of only a single-trip policy following Mr W's disclosure of an upcoming medical procedure. Saga explained that insurer A made the decision regarding policy terms. The ombudsman found that Saga and A are independent regulated businesses, with Mrs B and Mr W's contract being with A, not Saga. Saga's role was limited to arranging the policy and it made no error in doing so. The complaint was not upheld, with the ombudsman directing the complainants to address their concerns directly with insurer A.

The Ombudsman's reasoning

The ombudsman determined that Saga and insurer A are entirely separate and independent businesses, each regulated in their own right. Mrs B and Mr W's contract is with A, not Saga. While Saga arranged the policy, it does not act on behalf of A and is not responsible for A's underwriting decisions. The responsibility for deciding what level of risk can be accepted lies with A as the underwriter. Saga's only regulated activity was arranging the contract, which it performed without error or unfairness.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website