Not upheld: unfair charges and service complaint complaint against Admiral Insurance (Gibraltar) Limited

Decision detail

Summary

Mr M complained about Admiral Insurance charging £20.32 to extend his annual travel insurance policy from 31 days to 45 days when his father became seriously ill and subsequently died while he was abroad. Mr M argued the policy wording created false expectations about fees and that his father's death constituted exceptional circumstances warranting a waiver. The ombudsman found the policy wording reasonable, confirmed Admiral's charge was consistent with its standard pricing structure for similar adjustments, and concluded that while Admiral had discretion to waive the fee, it did nothing significantly wrong by not exercising that discretion. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the FCA's Principles for Businesses, including the Consumer Duty to deliver good outcomes and act in good faith. While sympathizing with Mr M's distressing circumstances, the ombudsman found that the policy wording using 'may' rather than 'will' regarding reassessment of premiums was not unreasonable and is common in insurance contracts. Admiral provided evidence that the additional premium charged was consistent with its pricing structure for any similar policyholder extending coverage from 31 to 45 days. Although Admiral had discretion to waive the fee as a gesture of goodwill, the ombudsman concluded it did nothing significantly wrong by not exercising that discretion, particularly given that Mr M received the benefit of the extended cover.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website