Not upheld: mis-selling complaint against Airsports Insurance Bureau Ltd

Decision detail

Summary

Mr M purchased a replacement vehicle policy from Airsports Insurance Bureau Ltd for his business car. When his car was involved in an accident but remained legally roadworthy, his claim for a replacement vehicle was denied. Airsports accepted it had not informed Mr M that replacement vehicles are only provided when the vehicle is unroadworthy and offered a £45 premium refund plus £100 compensation. Mr M rejected this, arguing it did not restore him to his original position. The ombudsman found the firm's offer fair and reasonable, as Mr M had not demonstrated he would have secured alternative cover or suffered financial loss had he been given complete information.

The Ombudsman's reasoning

The ombudsman accepted that Airsports had mis-sold the policy by not providing full information. However, the ombudsman found that Mr M had not demonstrated he would have been in a different position had he received complete information. The ombudsman noted that replacement vehicle policies typically only cover unroadworthy vehicles and that Mr M provided no evidence of alternative policies that would have covered him when his vehicle was damaged but still roadworthy. Additionally, Mr M had not shown any financial loss resulting from the lack of such cover.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website