Not upheld: Travel / life insurance claim disputes complaint against Astrenska Insurance Limited trading as Collinson Insurance

Decision detail

Summary

Mr K held a gadget insurance policy with AIL and made a claim after his phone was stolen. AIL declined the claim and avoided the policy, citing a misrepresentation in Mr K's answer to the question 'Are you a permanent UK resident?' Mr K disputed this, arguing the question was ambiguous and that his legal right to work and live in the UK meant he should be considered a permanent resident. The ombudsman found the question was clear with adequate supporting information, and Mr K, who was awaiting Indefinite Leave to Remain approval, should have known he did not meet the defined criteria for permanent UK resident status. The ombudsman upheld AIL's actions as compliant with CIDRA and fair, as the misrepresentation was qualifying and AIL refunded the premiums as required.

The Ombudsman's reasoning

The ombudsman found the question 'Are you a permanent UK resident' was clear and supported by adequate explanatory information. Mr K, who was awaiting approval for Indefinite Leave to Remain, did not meet the defined criteria for permanent UK resident status and should have reasonably known this. The answer was therefore a misrepresentation. As a qualifying misrepresentation, CIDRA permits AIL to decline the claim and avoid the policy, with premium refund, which AIL did. No wrongdoing was found.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website