Not upheld: delayed communication of application decline and handling of joint application process complaint against Legal & General Assurance Society Limited

Decision detail

Summary

Mr P and Mrs P complained that L&G failed to promptly inform Mr P that his life insurance application had been declined, resulting in Mrs P undergoing an unnecessary screening examination. L&G acknowledged the communication delay and offered £200 compensation. The ombudsman found that while earlier communication would have been preferable, L&G was following reasonable underwriting practice by continuing to assess Mrs P's eligibility for sole cover, and Mr P and Mrs P remained free to cancel the application at any time. The ombudsman upheld the £200 compensation as fair and reasonable, finding it adequately reflected the distress and inconvenience caused.

The Ombudsman's reasoning

The ombudsman found that while L&G could have communicated Mr P's decline sooner and this caused inconvenience, the firm was following reasonable underwriting practice by continuing to assess Mrs P's separate eligibility. The ombudsman noted that Mr P and Mrs P remained free to cancel the application at any stage if they felt the process was unsatisfactory. The distress and inconvenience caused did not materially exceed what L&G had already recognised and apologised for through the £200 offer.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website