Not upheld: Travel / life insurance claim disputes complaint against National Farmers Union Mutual Insurance Society Limited

Decision detail

Summary

Mrs G complained that NFU unfairly voided her farm insurance policy and cancelled associated policies following a storm damage claim in 2022. NFU discovered a 2020 structural report identifying significant issues with a Grade II listed heritage barn on the property and treated this as a non-disclosure of material information, voiding the policy under the Insurance Act 2015. Mrs G argued NFU had prior knowledge from pre-inception site visits and document reviews. The ombudsman found that Mrs G breached the duty of fair presentation by confirming the property was in 'good condition' despite knowing of the 2020 report, and that NFU had no persuasive evidence of prior knowledge. The ombudsman upheld NFU's right to void the policy and cancel associated policies as a remedy for the qualifying reckless breach.

The Ombudsman's reasoning

The ombudsman found that the condition of the property was a material circumstance that would influence a prudent insurer's decision. Mrs G failed to fairly present the condition of the buildings, particularly the heritage barn, when she confirmed they were in 'good condition' despite knowing of the 2020 report identifying poor structural condition. NFU demonstrated they would not have provided cover had they known this information, establishing a qualifying breach. The ombudsman found the breach was reckless because Mrs G was aware of the report but did not disclose it, demonstrating she did not care whether she was in breach of the duty of fair presentation. Under the Insurance Act 2015, this entitled NFU to void the policy, refuse all claims, and retain premiums. The ombudsman rejected Mrs G's claim that NFU had prior knowledge, finding no persuasive contemporaneous evidence of detailed pre-inception inspections or document reviews.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website