Not upheld: claim declined - contract pre-dating policy complaint against QIC Europe Ltd

Decision detail

Summary

Miss W complained that QIC Europe Ltd unfairly declined her legal expenses insurance claim relating to a dispute over window installation. The contract with the window company was entered into in 2018, but Miss W's insurance policy only started in December 2020. QIC initially suggested the claim might be covered for court fees and reimbursed the court fee, but later declined the claim on the basis that the contract pre-dated the policy. The ombudsman found the policy wording was clear that cover only applied to contracts entered into during the insurance period, and that Miss W was explicitly advised in October 2023 of this limitation before incurring most of her costs. The complaint was not upheld, though QIC was not required to recover the court fee already paid.

The Ombudsman's reasoning

The ombudsman found the policy wording was clear that cover only applied to contracts entered into during the period of insurance. The relevant date was when the contract was made (2018), not when the dispute arose or was discovered. While there was initial uncertainty, Miss W was told in September 2023 that cover 'may' be provided (not guaranteed) and was explicitly advised in October 2023 that the contract pre-dated the policy and cover was not available. The ombudsman found Miss W was not misled into pursuing court proceedings solely on the basis of guaranteed cover, as she was only told cover might be available and was informed of the contract date issue before incurring most costs. QIC's agreement not to recover the court fee paid in error was fair.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website