Not upheld: unfair changes to rewards programme benefits complaint against Vitality Health Insurance Limited

Decision detail

Summary

Mrs K complained that Vitality changed its rewards programme from providing guaranteed weekly and monthly rewards to a new 'pick and play' scheme that she felt involved gambling-like activity and resulted in fewer rewards. Vitality defended the change as offering greater flexibility and value, offered vouchers as goodwill compensation, and did not uphold the complaint. The ombudsman found that the policy terms explicitly permitted such changes, Vitality had informed Mrs K of the changes, and the new scheme did not involve actual gambling. The complaint was not upheld as Vitality acted in line with policy terms and fairly and reasonably.

The Ombudsman's reasoning

The ombudsman found that the policy terms and conditions clearly permitted Vitality to change the rewards programme, including how points are awarded and incentives offered. Vitality had informed Mrs K of the changes before implementation. The ombudsman noted that reward schemes are commercial decisions Vitality is entitled to make, and since Mrs K is not the policyholder, it would be for her employer to decide if the scheme no longer met their needs. The ombudsman rejected the gambling concern, finding that nothing is wagered and participation is optional.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website