Not upheld: claim declined - deception exclusion complaint against Aviva Insurance Limited

Decision detail

Summary

Mr R sold his car to a buyer who deceived him through fake payment confirmation and false identification, then drove away with the vehicle without paying. Mr R claimed on his Aviva car insurance policy, but Aviva declined the claim under the policy exclusion for loss gained by deception. The ombudsman upheld Aviva's decision, finding the exclusion was standard, clearly worded, and fairly applied. Although the car was later recovered with extensive damage, the ombudsman concluded the exclusion would still apply to the subsequent damage caused after the initial deception.

The Ombudsman's reasoning

The ombudsman agreed with Aviva that Mr R was deceived by the buyer through an elaborate and well-prepared crime. The policy explicitly excludes loss or damage where possession is gained by deception. The exclusion is standard across the insurance marketplace and Aviva provided sufficient information about the cover. The Consumer Duty does not remove a customer's own responsibility for their choices. The exclusion would still apply to the subsequent damage caused after the deception occurred.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website