Upheld: failure to provide accurate information during claims process complaint against Admiral Insurance (Gibraltar) Limited

Decision detail

Summary

Mr and Mrs C claimed under their travel insurance policy following a power outage at a London airport in March 2025. When Mrs C contacted Admiral, she was told the claim could be investigated but no outcome was promised. Admiral subsequently declined the claim due to an electrical outage exclusion in the policy. The ombudsman found that Admiral's internal bulletin clearly stated no cover for such circumstances and was more likely sent before Mrs C's call, so the agent should have informed her of this. However, the ombudsman determined that even with correct information, Mr and Mrs C would have suffered the same financial loss given their trip timing and prior airline refund request. The complaint was upheld and Admiral was ordered to pay £300 compensation for distress and inconvenience.

The Ombudsman's reasoning

While insurers are not generally expected to advise on claim coverage at first notification, this situation was unique and high-profile. Admiral's internal bulletin clearly stated there was no cover for electrical outages. The ombudsman found it more likely than not that this bulletin was sent before Mrs C's call, so the agent should have informed her the claim would not be covered. However, even with correct information, Mr and Mrs C would likely have suffered the same financial loss given the trip timing and their prior airline refund request. Therefore, compensation for distress and inconvenience was appropriate rather than claim payment.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website