Not upheld: cancellation claim decline and claims handling process complaint against AWP P&C S.A.

Decision detail

Summary

Mr and Mrs W claimed on their travel insurance policy after Mr W was diagnosed with terminal cancer and required urgent treatment, necessitating cancellation of their holiday. AWP refunded the deposit but declined to cover the balance paid on 17 May 2025, arguing that Mr W had been medically advised to cancel on 7 May 2025, before the balance payment. The ombudsman found this decision fair and reasonable, as the policy required medical advice to cancel before the trip was cancelled, and Mr and Mrs W should have notified the travel provider during the ten-day gap between diagnosis and balance payment. However, the ombudsman upheld a complaint about AWP's failure to clearly communicate which parts of the GP certificate needed amendment, causing unnecessary inconvenience at an already difficult time, and awarded £200 compensation for this error.

The Ombudsman's reasoning

The ombudsman found that the policy terms required medical advice to cancel before the trip was cancelled, and that the balance was paid after such advice was given. The medical evidence supported that Mr W was diagnosed and advised to cancel on 7 May 2025, ten days before the balance payment on 17 May 2025. The ombudsman considered that Mr and Mrs W had a general duty to mitigate their financial losses and should have notified the travel provider during those ten days rather than paying the balance. However, the ombudsman upheld a complaint about AWP's failure to clearly communicate which parts of the GP certificate needed amendment, causing unnecessary inconvenience at a difficult time.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website