Not upheld: unfair claim decline - application of exclusion clause complaint against AWP P&C S.A.

Decision detail

Summary

Miss B claimed for unused domestic flights in country V after her international flights were cancelled due to airspace restrictions caused by regional hostilities. AWP declined the claim citing a war and hostilities exclusion in the policy. Miss B argued the exclusion did not apply to the domestic flights, which were not cancelled and not affected by the airspace restrictions, and that the airline's official reason was 'operational reasons'. The ombudsman upheld AWP's decision, finding the claim arose directly from the cancelled flights caused by hostilities, and that even without the exclusion, the specific circumstances were not covered under any policy section.

The Ombudsman's reasoning

The ombudsman applied the policy terms as the starting point and found that the war and hostilities exclusion clearly applied to claims arising from the regional hostilities that caused the flight cancellations. Although the airline cited 'operational reasons', the underlying cause was the airspace closure due to hostilities. The claim for unused domestic flights was caught by the exclusion because it arose directly from the cancelled flights to V, which were cancelled due to the hostilities. Additionally, even if the exclusion did not apply, the specific circumstances were not covered under any other section of the policy as there was no insured event.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website