Not upheld: claim value dispute and unfair policy review process complaint against ReAssure Life Limited

Decision detail

Summary

Mrs G complained about ReAssure Life Limited regarding a reduced claim value following her husband's death and the policy review process. After a 2024 policy review, ReAssure reduced the sum assured from £9,269 to £5,214 when Mrs G did not respond to notification that premiums needed to increase. Mrs G's representative argued this was unfair, particularly given Mrs G's vision difficulties and the method of communication (post only). The ombudsman found that ReAssure was not made aware of vulnerabilities, the reduction complied with policy terms, and sufficient information had been provided since 2019 about the policy's performance and future costs. The complaint was not upheld, though ReAssure's compensation for missed callbacks was acknowledged as appropriate.

The Ombudsman's reasoning

The ombudsman found that ReAssure was not required to assume Mrs G was vulnerable based on age alone, as this could constitute discrimination. Since ReAssure was not made aware of her vulnerabilities, they were not obliged to deviate from standard processes. The policy terms explicitly allowed for reduction of sum assured if unit performance was insufficient, provided the minimum threshold was maintained. The 2019 review letter provided clear, fair and sufficient information about policy performance, charges, and future premium requirements. The sum assured was not guaranteed and statements accurately reflected the position at each point in time. The only service failing was missed callbacks, for which compensation had already been paid.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website