Not upheld: claims handling - refusal to pay upfront costs complaint against Zurich Insurance Company Limited

Decision detail

Summary

Mrs H complained that Zurich Insurance refused to pay a £500 fee to modify her flight to return home earlier after her father's death while she was on holiday abroad. Zurich explained the policy operates on a pay and claim basis and only provides upfront payment for medical repatriation situations. The ombudsman found Zurich's position reasonable, noting that travel insurance is not intended to cover every situation when things go wrong, and that since Mrs H did not curtail her trip or incur any loss, there was no cost for the insurer to consider. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while the policy terms could potentially have covered curtailment due to the death of an immediate relative, Zurich was not unreasonable in refusing to pay the flight modification fee upfront. Zurich's position that upfront payment is only provided for medical repatriation was reasonable given that neither Mrs H nor any insured traveller was injured or unwell. Travel insurance is not intended to cover every situation when things go wrong, and the policy terms set out specific circumstances for cover. Since Mrs H did not curtail her trip and did not incur any loss, there was no cost for the insurer to consider.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website