Not upheld: claim decline and claim handling procedures complaint against Chubb European Group SE

Decision detail

Summary

Mr E1, Mrs E, Mr E2 and Ms E complained about Chubb's handling of a travel insurance claim for a cancelled holiday to country S in December 2020. The flights were cancelled due to Covid-19 and government restrictions, and the return airline did not refund the costs. Chubb declined the claim as the cancellation reasons were not listed as insured events under the policy, and the prohibitive regulations exclusion applied. Although Chubb initially assessed the claim under incorrect policy terms and failed to provide timely responses, the ombudsman found the ultimate decision to decline was fair and reasonable. The £200 compensation offered for the procedural errors was found to be fair and reasonable in the circumstances.

The Ombudsman's reasoning

The ombudsman found that the holiday cancellation was not covered under the policy's cancellation section as the reasons (Covid-19, border closures, government restrictions) were not listed as insured events. Additionally, the prohibitive regulations exclusion in the policy would likely apply given the combination of UK government restrictions on international travel, Foreign Office advice against travel to country S, and country S's entry restrictions. While Chubb made procedural errors in initially assessing the claim under wrong terms and providing incorrect reasons for decline, the ultimate decision to decline was fair and reasonable. The £200 compensation adequately reflected the distress and inconvenience caused by these procedural errors.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website