Partially upheld: improper policy cancellation and failure to make adequate enquiries complaint against Accredited Insurance (Europe) Ltd

Decision detail

Summary

Mr H complained that AIEL cancelled his motor insurance policy after he enquired about adding business use coverage. AIEL cancelled the policy based on a misunderstanding that Mr H was a delivery driver, an occupation it did not cover, without asking sufficient questions to clarify his actual role as a business owner. The cancellation created a gap in his driving history and affected his No Claims Discount. AIEL subsequently acknowledged its error and offered remedial measures including backdating the cancellation, removing the marker, and refunding premiums. Mr H sought additional compensation for professional costs incurred in bringing the complaint, which the ombudsman rejected as the assistance was administrative in nature and could have been provided by Mr H himself.

The Ombudsman's reasoning

AIEL made an error by cancelling Mr H's policy without asking sufficient questions about his occupation. The ombudsman found that AIEL's remedial actions (backdating cancellation, removing the marker, providing a letter, waiving charges, and refunding premiums) reasonably restored Mr H's position. However, the ombudsman rejected the claim for professional costs because the assistance was administrative in nature and could have been provided by Mr H himself, and FCA rules state that complainants should not normally need professional advisers to bring complaints to the FOS. The premium refund was deemed sufficient compensation for the stress and worry caused.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website