Upheld: Account administration errors complaint against Aviva Life & Pensions UK Limited

Decision detail

Summary

Mr M complained about Aviva's handling of his whole of life insurance policy premium payments after he needed to change his payment method in January 2025 due to employment and residency changes. Aviva experienced significant delays in establishing the new payment method, failed to request all required information upfront, and did not promptly communicate that it could not accept premiums Mr M had paid, resulting in the policy being made paid up. Although Aviva eventually reinstated the policy and agreed to accept backdated premiums, the entire process took over a year and caused Mr M considerable stress and inconvenience. The ombudsman upheld the complaint and ordered Aviva to pay £700 compensation, finding that while additional verification was necessary for non-UK residents, the extent of delays was unjustified and caused avoidable harm.

The Ombudsman's reasoning

Aviva admitted responsibility for significant delays in processing the payment method change request. While additional verification processes were required due to Mr M's non-UK residency status, these did not justify the extent of delays experienced. The protracted process caused the policy to be made paid up through no fault of Mr M, and the lack of clarity in Aviva's requirements made it difficult for him to understand what was needed. The compensation must reflect the considerable distress, worry, and inconvenience Mr M suffered over a significant period before resolution.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website