Not upheld: refusal to provide partial premium refund complaint against AWP P&C S.A.

Decision detail

Summary

Mr R purchased an annual travel insurance policy in November 2024. After discovering a cancerous cyst in December 2024, he notified AWP in January 2025 before a planned February trip. AWP offered continued cover for an additional premium of £332.40, which Mr R accepted and completed his trip. Upon return, Mr R requested a pro-rata refund, arguing the remaining nine months of the policy would be unused due to his ongoing medical investigations. AWP declined the refund. The ombudsman found that Mr R had been given a clear choice between paying the additional premium or cancelling for a pro-rata refund, and his decision to travel did not constitute exceptional circumstances warranting discretionary refund outside the policy terms.

The Ombudsman's reasoning

The ombudsman found that Mr R was outside the 14-day cooling-off period when he requested cancellation after his trip. The policy terms clearly state that when a policyholder notifies of a health change, they have the choice of either accepting an additional premium or cancelling and receiving a pro-rata refund - not both. Mr R chose to pay the additional premium to proceed with his trip. While the ombudsman sympathized with Mr R's medical situation, the remaining nine months of unused policy and potential future health-related premiums did not constitute exceptional circumstances warranting discretionary refund outside the policy terms.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website