Not upheld: travel insurance claim denial and product information clarity complaint against Clydesdale Bank Plc trading as Virgin Money

Decision detail

Summary

Mr C complained that Virgin Money should be held responsible for a declined travel insurance claim after he missed a connecting flight due to an inbound flight delay. Mr C argued that Virgin Money should be responsible because he pays the packaged account fee to Virgin Money and his contract is with Virgin Money. The ombudsman found that Virgin Money acts as an insurance intermediary and the actual insurance contract is with the insurer, not Virgin Money. While Virgin Money has responsibilities regarding clear disclosure and information provision, it is not responsible for claim assessment or claims handling customer service. The ombudsman determined the IPID provided a reasonable summary and declined to uphold the complaint.

The Ombudsman's reasoning

The ombudsman determined that Virgin Money acts as an insurance intermediary, not the direct provider of travel insurance. The contract for travel insurance is between Mr C and the insurer, not Virgin Money. While Virgin Money has responsibilities regarding clear disclosure and information provision, it is not responsible for the insurer's claim decisions or customer service during claims handling. The IPID provided a reasonable high-level summary as required, and detailed policy terms were available in the full policy wording. The claims handling and customer service during Mr C's call were the insurer's responsibility, as he was connected to an insurer agent through the Club M travel insurance claims line.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website