Not upheld: Home insurance claim disputes complaint against Hiscox Insurance Company Limited

Decision detail

Summary

Mr G claimed for the theft of his bicycle under a Hiscox bicycle insurance policy after his bike was stolen from a secure rack in February 2026. The bike had been secured by looping a lock around the main down tube of the frame rather than through the frame as required by the policy. Hiscox declined the claim on the basis that Mr G had not complied with the security conditions specified in the policy terms. The ombudsman upheld Hiscox's decision, finding the policy terms were clear and unambiguous, and that insurers have the right to set specific security requirements as part of their commercial discretion.

The Ombudsman's reasoning

The ombudsman found the policy terms were clear and unambiguous in requiring the lock to go through the bike frame, not around it. Insurers have commercial discretion to decide what risks they will cover and can rely on their specified policy requirements. Mr G did not use the locking method required by the policy terms, and it was his responsibility to comply with the security conditions to obtain theft cover. The ombudsman rejected arguments that the terms were ambiguous or that the required locking method was impossible given the type of bike.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website