Upheld: claim decline - improper application of policy exclusion complaint against Intact Insurance UK Limited (formerly UK Insurance Limited)
Financial Ombudsman decision DRN-6264093 of 2026-05-26T00:00:00+00:00. claim decline - improper application of policy exclusion complaint against Intact Insurance UK Limited (formerly UK Insurance Limited). Outcome: Upheld.
Decision detail
| Reference | DRN-6264093 |
|---|---|
| Decision date | 2026-05-26T00:00:00+00:00 |
| Firm | Intact Insurance UK Limited (formerly UK Insurance Limited) |
| Product | insurance |
| Claim type | claim decline - improper application of policy exclusion |
| Outcome | Upheld |
| Remedy | Intact must deal with the claim for the trailer in accordance with the remaining policy terms and any applicable limit for trailers. If repairs have been paid for, Intact must reimburse the amount paid plus interest from the date of payment to settlement. Intact must provide an invoice and a tax deduction certificate if requested. |
Summary
Mr K, Mr K and Ms K claimed for theft of a pick-up truck and attached trailer after the pick-up was stolen with keys left in the ignition. UKI declined both claims relying on an exclusion requiring ignition keys to be removed and doors locked. The ombudsman upheld the complaint regarding the trailer, finding that the exclusion referring to 'the ignition key' cannot apply to a trailer which has no ignition. The policy specifically covers trailers as vehicles whether attached or detached, and the exclusion must be interpreted as applying to each vehicle separately. Intact was ordered to deal with the trailer claim according to the remaining policy terms and reimburse any repairs paid for, plus interest.
The Ombudsman's reasoning
The ombudsman found that while the trailer was stolen as a result of the pick-up being stolen with keys in the ignition, the exclusion clause specifically refers to 'the ignition key' being removed from 'the vehicle'. Since a trailer has no ignition, the exclusion cannot logically apply to it. The policy specifically defines trailers as vehicles covered whether attached or detached, and the exclusion must be interpreted as applying to each vehicle separately. Therefore, Intact cannot rely on this exclusion to decline the trailer claim.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Intact Insurance UK Limited (formerly UK Insurance Limited), all decisions | 1 | 100% |
Source
Read the original decision on the Financial Ombudsman Service website