Not upheld: claim decline - failure to comply with policy endorsement complaint against Advantage Insurance Company Limited

Decision detail

Summary

Mr I claimed on his motor insurance policy after his car was stolen from the street outside his home. AIC declined the claim based on a policy endorsement requiring the car to be parked on the driveway between 10pm and 6am. Mr I disputed this decision, arguing it was unfair given mitigating circumstances regarding Mrs A's health and contending that AIC failed to comply with the Insurance Act 2015 by not demonstrating material increased risk in his individual circumstances. The ombudsman upheld AIC's decision, finding the endorsement was clearly communicated, Mr I was aware of it, and AIC provided sufficient evidence that street parking creates increased theft risk. The ombudsman also rejected the mitigating circumstances argument, finding that Mr I had the opportunity to move the car to the driveway after the initial parking decision.

The Ombudsman's reasoning

The ombudsman found that Mr I failed to comply with the clear policy endorsement requiring driveway parking between 10pm and 6am, which Mr I was aware of and had agreed to. AIC provided evidence that thefts are more prevalent when cars are parked on public streets versus private driveways, satisfying the requirements of the Insurance Act 2015. While Mrs A's health condition explained why the car was initially parked on the street, the ombudsman found this did not constitute a mitigating circumstance that should have changed the claim decision, as Mr I had the opportunity to move the car to the driveway to comply with the endorsement after the initial parking decision.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website