Upheld: incorrect information about indemnity limit; failure to provide accurate policy terms complaint against HDI Global Specialty SE

Decision detail

Summary

Mrs D claimed on legal expenses insurance following a serious accident abroad in which her husband died. HDI initially told her the indemnity limit was £100,000, but later corrected this to £50,000 in May 2025. Mrs D argued HDI should honour the higher figure as she had instructed solicitors based on that information. The ombudsman found HDI's error was clear but concluded Mrs D would likely have appointed the same solicitors even with the correct limit, as her primary concern was obtaining appropriate legal representation rather than the indemnity amount. The ombudsman upheld the complaint and ordered £450 compensation for distress and inconvenience, rather than requiring HDI to apply the higher limit.

The Ombudsman's reasoning

Although HDI made a clear error in stating the indemnity limit as £100,000 instead of £50,000, the ombudsman found that Mrs D would likely have appointed the same solicitors even with the correct figure. The evidence showed that Mrs D's primary concern was having the right solicitors act for her, not the indemnity limit. She had received a recommendation for the solicitors, was aware of the substantial costs shortfall even with the higher limit, and was willing to proceed despite the large potential personal liability. The indemnity limit was not the key driver of her decision-making. Therefore, it is fair for HDI to apply the correct contractual limit of £50,000.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website