Not upheld: irresponsible underwriting / non-disclosure of material facts / policy voidance complaint against One Insurance Limited

Decision detail

Summary

Mr and Mrs R complained that One Insurance Limited unfairly voided their motor insurance policy and declined a theft claim after Mr R failed to disclose multiple motoring offences (totalling 12 penalty points) when the insurer requested confirmation of information. The ombudsman found that Mr R made a careless misrepresentation by not disclosing the offences, particularly as he had paid a penalty for one offence before the policy variation took effect and should have remembered the others. Since One's underwriting criteria showed it would not knowingly offer cover to a driver with 12 penalty points, the misrepresentation was qualifying under the Consumer Insurance (Disclosure and Representations) Act 2012. The ombudsman upheld One's decision to void the policy and decline the claim as fair and in accordance with CIDRA remedies, and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that Mr R made a careless misrepresentation by failing to disclose his motoring offences when One's statement of fact asked him to confirm or amend information about convictions or pending prosecutions. Mr R should reasonably have remembered the SP30 offences and had paid the CU80 penalty before the policy variation took effect on 16 January 2025. Since One's underwriting criteria showed it would not knowingly offer cover to a driver with 12 penalty points, the misrepresentation was qualifying under CIDRA. Therefore, One's remedies of treating the policy as void and declining the claim were appropriate and fair.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website