Not upheld: insurance application handling and underwriting validation complaint against GROVE & DEAN LIMITED

Decision detail

Summary

Mr H applied for motorcycle insurance through G&D, stating he was retired. After the insurer's validation process, the insurer required Mr H to change his occupation to 'independent means' because he lived off savings rather than pension, resulting in a £31.39 premium increase. Mr H complained that he should be described as retired, but G&D did not uphold the complaint and offered to waive its cancellation fee. The ombudsman found that validation checks after policy setup are standard practice and that G&D fairly communicated the insurer's underwriting requirements and offered reasonable remedies.

The Ombudsman's reasoning

The ombudsman considered it normal and fair for validation checks to occur after policy setup, even if the applicant had provided information upfront. The ombudsman found that G&D appropriately passed on the insurer's requirement to clarify occupation status and the resulting premium increase. The ombudsman noted that Mr H's statement about living off savings differed from living off pension proceeds, which justified the insurer's distinction. G&D acted fairly by waiving its fees to facilitate cancellation if Mr H wished to proceed.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website