Not upheld: unfair policy cancellation and refusal to refund premiums complaint against Accredited Insurance (Europe) Ltd (AIL)

Decision detail

Summary

Miss O complained that AIL unfairly cancelled her motor insurance policy and refused to refund her premiums. The policy required a telematics device to remain installed in the car. AIL cancelled the policy after finding the device had been unplugged multiple times. Although AIL initially received incorrect information from the garage, upon second contact the garage confirmed it had removed the device, and AIL apologised and removed the voidance record. The ombudsman found that location data showed additional disconnections at non-garage locations which Miss O acknowledged, justifying cancellation. The ombudsman also upheld AIL's refusal to refund premiums because the policy terms exclude refunds when a fault claim has been made on the policy. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that AIL's policy terms clearly stated the telematics device must not be removed except for car sale or windscreen repair. The location data and timing of disconnections showed multiple occasions where the device was unplugged outside the garage, which Miss O acknowledged. Even excluding the garage-related disconnections, the evidence supported cancellation for breach of policy terms. Regarding the premium refund, the policy terms explicitly state no refund is due if a claim has been made where the policyholder was responsible, and Miss O's fault claim triggered this provision. AIL's actions in removing the voidance record and refunding the cancellation fee after the garage clarification constituted a fair resolution.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website