Not upheld: claim settlement and application of deductions for wear, tear, and depreciation complaint against AWP P&C S.A.

Decision detail

Summary

Ms B claimed under her travel insurance policy after leaving her bag on a plane. AWP initially declined the claim, but the first FOS investigation upheld the complaint and recommended reconsideration. AWP reconsidered and paid £727.92 in settlement with deductions applied to various items. Ms B then complained about the deductions, particularly regarding a designer handbag over two years old. The ombudsman found that AWP correctly applied the deductions in line with policy terms and internal guidelines, and therefore did not uphold the second complaint.

The Ombudsman's reasoning

The policy clearly states that items over two years old are subject to deductions for wear, tear, and depreciation unless original purchase receipt is provided. AWP applied deductions in line with their internal guidelines, which the ombudsman reviewed and found to be applied consistently and fairly. The ombudsman noted that deductions for wear and tear are standard in travel insurance policies and that AWP is not required to specify exact deduction amounts in policy terms as these vary by item and age.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website