Not upheld: cancellation of group insurance policy / market withdrawal complaint against Maiden Life Försäkrings AB, UK Branch

Decision detail

Summary

Ms H complained that Maiden Life Försäkrings AB withdrew her Family Protection Plan (FPP) group policy from the market, leaving her without death benefit cover. The FPP was a monthly renewable group policy held by a credit union, and the terms allowed for cancellation with 30 days' notice. Maiden Life provided significantly more notice than required and extended the cancellation date to allow members time to find alternative cover. The ombudsman found that Maiden Life had the right to make this commercial decision and acted fairly and reasonably by providing extended notice. Although Ms H had paid premiums for many years and now faces difficulty obtaining alternative cover at reasonable rates, the ombudsman concluded this was not Maiden Life's responsibility. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Maiden Life had the commercial right to withdraw from the market. The firm provided significantly more notice than the contractually required 30 days and extended the cancellation date to minimize impact on members. Although Ms H had paid premiums for many years and now faces difficulty obtaining alternative cover, the policy terms reflected that the FPP renewed monthly without guaranteeing lifelong cover. The ombudsman concluded Maiden Life acted fairly and reasonably in the circumstances and was not responsible for Ms H's inability to obtain alternative cover at reasonable rates.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website