Partially upheld: claim decline - alleged unfair application of policy terms complaint against Zurich Insurance Company Ltd

Decision detail

Summary

Mr S claimed on his travel insurance after his flight was cancelled due to strike action and he incurred costs rebooking alternative flights. Zurich declined the claim because Mr S had not checked in for the cancelled flight, citing policy terms requiring check-in unless the airline instructed otherwise. The ombudsman found that while the airline's email did not explicitly state Mr S should not travel to the airport, it effectively conveyed this message by confirming the cancellation and unavailability of alternatives within three days. The ombudsman required Zurich to reassess the claim under the 'Delayed departure, Trip abandonment and Flight cancellation' section, subject to policy limits and any deductions for airline refunds or compensation under the airline's updated goodwill policy. No compensation was awarded for Mr S's time and distress.

The Ombudsman's reasoning

While Zurich correctly declined the claim on a strict interpretation of the policy terms requiring check-in, the ombudsman found this approach was not fair and reasonable in all the circumstances. The airline's email, though not explicitly stating Mr S should not travel to the airport, clearly conveyed this message by confirming the flight was cancelled and no alternatives were available within three days. The ombudsman determined the airline had effectively instructed Mr S not to travel to the departure point, satisfying the policy exception to the check-in requirement.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website