Not upheld: reckless misrepresentation regarding registered keeper and legal owner status; claim denial under CIDRA complaint against Watford Insurance Company Europe Limited

Decision detail

Summary

Mr J obtained a comprehensive motor insurance policy with Watford on 21 October 2024, answering that he was (or would be) the registered keeper and legal owner of a car valued at nearly £17,000. In reality, his father was the registered keeper and legal owner. When Mr J claimed for fire damage in June 2025, Watford treated the policy as void and declined the claim, citing reckless misrepresentation. Mr J complained, later providing evidence of payments made in December 2024 and claiming an informal agreement to purchase existed from August 2024. The ombudsman found the misrepresentation was reckless, rejected the evidence of a pre-October 2024 agreement, and upheld Watford's decision to void the policy and retain the premium under CIDRA.

The Ombudsman's reasoning

The ombudsman found that Mr J made a reckless misrepresentation when answering that he was (or would be) the registered keeper and legal owner, when in fact his father held both positions. The ombudsman was not persuaded that any binding agreement to purchase the car existed by 21 October 2024, noting that the evidence of payments and supporting documents were dated December 2024 (after policy inception) and were only provided much later in the complaint process. The ombudsman concluded that Mr J ought reasonably to have known his answer was incorrect, as he could see his father's name on the V5 registration document and knew no firm intention existed to change the registered keeper with DVLA. Under CIDRA, Watford was entitled to treat the policy as void and decline the claim, and to keep the premium as the misrepresentation was reckless rather than merely careless.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website