Not upheld: mis-selling of accidental death plan complaint against Stonebridge International Insurance Ltd

Decision detail

Summary

Mr A complained that an accidental death plan sold to him by Stonebridge International Insurance Ltd in early 2006 was mis-sold, claiming he was told he could cancel at any time and receive a full refund of premiums. The ombudsman initially considered whether the complaint was made in time, finding that Mr A only became aware he had cause for complaint in July 2025 when Stonebridge refused his refund request, bringing the complaint within the three-year time limit. However, on the merits, the ombudsman found no evidence supporting Mr A's claim that he was advised of a refund entitlement, noting that the ADP was a personal accident plan with no investment element and its terms and conditions did not provide for premium refunds after the cooling-off period. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that the ADP was a personal accident plan with no investment element, meaning no fund was built up over time. The terms and conditions did not provide for refund of premiums upon cancellation after the cooling-off period. Although Mr A had been paying premiums for many years, there was no evidence to support his claim that he was advised at the point of sale that he could cancel at any time and receive a full refund. The ombudsman was satisfied that policy documents were sent to and likely received by Mr A in January 2006, before he moved address. Based on the type of plan, its terms and conditions, and the lack of evidence to the contrary, the ombudsman concluded it was not likely that Mr A was advised of a refund entitlement.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website