Upheld: Home insurance claim disputes complaint against MSIG Europe SE trading as MS Amlin

Decision detail

Summary

Mr S complained about MSIG's handling of a marine insurance claim for his boat, which suffered damage from mink breeding and deterioration while stored at a marina. MSIG authorised repairs for internal damage but refused to cover canopy, hull, solar panel and battery damage, claiming these resulted from gradual deterioration excluded under the policy. MSIG also initially refused to arrange the boat's return to its original location, expecting Mr S to arrange this himself. The ombudsman upheld the complaint, finding MSIG acted unreasonably by expecting a vulnerable customer with poor health to arrange relocation and by disposing of the canopy without consultation. However, the ombudsman upheld MSIG's exclusion of damage from gradual deterioration. MSIG was ordered to arrange boat return, cover all storage costs, pay 50% of canopy replacement costs, and pay £600 compensation.

The Ombudsman's reasoning

The ombudsman found MSIG acted unreasonably by: (1) expecting Mr S to arrange boat relocation himself given his poor health and that MSIG had moved it at its own suggestion; (2) disposing of the canopy without consulting Mr S, even though the canopy was not being claimed for and was providing some protection; (3) failing to honour its later commitment to cover relocation costs. The ombudsman upheld MSIG's position on hull, solar panel and battery damage as these were caused by gradual deterioration or lack of maintenance, which are excluded under the policy. The ombudsman found MSIG's surveyor's conclusions reasonable and supported by contractor comments. However, the ombudsman required MSIG to contribute 50% toward canopy replacement costs due to the improper disposal without consultation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website